- 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.
