Article 72HAG Uber rewrites contracts with drivers to avoid paying UK’s new ‘taxi tax’

Uber rewrites contracts with drivers to avoid paying UK’s new ‘taxi tax’

by
Simon Goodley
from Technology | The Guardian on (#72HAG)

Hailing app will now act as agent rather than supplier outside London, avoiding VAT requirement

Uber has swerved paying millions of pounds to the UK exchequer under Rachel Reeves's new taxi tax" after the ride-hailing app rewrote contracts with its drivers.

The move came as rules announced in November's budget took effect, which adjusted how VAT is payable on minicab fares and would have resulted in the whole Uber fare becoming subject to the 20% sales tax.

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