Consultation on the VAT Treatment of Private Hire Vehicles
Read the full outcome
Detail of outcome
The government received 86 responses to the VAT Treatment of Private Hire Vehicles consultation, which ran from 18 April 2024 to 8 August 2024. The government has now analysed feedback and published its response to the consultation, outlining next steps.
In response to the consultation, the government will not amend VAT legislation to allow PHVOs to act as agents for tax purposes in all cases, nor will it introduce a new margin scheme or reduced rate for the sector.
The government will legislate to exclude suppliers of private hire vehicle and taxi services from the Tour Operators’ Margin Scheme, except where these are supplied in conjunction with certain other travel services.
The government will keep legislation relating to taxis and PHVs under review, in order to ensure that customer safety is prioritised alongside a fair market for firms of different types and in different places.
Original consultation
Consultation description
The government has published a consultation on the potential tax impacts of the Uber Britannia Limited v Sefton Borough Council High Court judgment that was handed down on 28 July 2023, and the Uber London Limited v Transport for London High Court judgment that was handed down on 6 December 2021, on the private hire vehicle (PHV) sector and its passengers. This consultation invites views on potential government interventions that could help to mitigate any undue adverse effects on the PHV sector and its passengers.
Documents
Updates to this page
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Outcome added.
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First published.