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Bolt’s Legal Triumph: Potential £500M Repayment and Implications for Uber

  • Bolt has won a legal victory against HMRC, potentially leading to Uber reclaiming £500 million.
  • The ruling affects VAT charges on rides for minicab competitors.
  • The tribunal ruled that TOMS VAT applies to mobile ride-hailing services like Bolt, but Uber argues it should only apply to service fees.
  • London’s private hire businesses can now submit claims for overpaid VAT.
  • Uber’s nationwide VAT charges are also under scrutiny.
  • HMRC is disappointed with the ruling and Uber warns of potential fare hikes.
  • Chancellor Jeremy Hunt promises a Treasury consultation on private hire fares.
  • The outcome of these deliberations could reshape VAT application in the rideshare sector.
  • This tax dispute signifies a transformative period for the industry.

Source: ukpropertyaccountants.co.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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