- Bolt Services UK Ltd has won a significant VAT case at the First-tier Tribunal.
- The court ruled that Bolt should pay VAT using the Tour Operators’ Margin Scheme (TOMS).
- HMRC intends to appeal the decision.
- The President of the Tribunal has made similar decisions in another VAT case, increasing the chances of success for the taxpayer on appeal.
- The Bolt decision does not have an immediate impact on private hire operators unless they are based in London or already acting as principals.
- Uber is also due to take a VAT case to the Tribunal and argue for the use of TOMS.
- The outcome of the Uber case is uncertain, but there are interesting points to consider, such as the employment status of drivers and their VAT obligations.
- There is no established UK case law or HMRC guidance on the VAT status of workers, which may be a key issue in the Uber hearing.
Source: mha.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.
Latest Posts in "United Kingdom"
- Tribunal Rules on VAT Status of Government Grants for Free Educational Services by Colleges
- Colleges Win £2.8 Million Tax Rebates Amid VAT Rule Dispute with HMRC
- The UK Should Lower or Abolish, Not Raise, Its VAT Registration Threshold
- UK Should Lower or Abolish VAT Threshold to Boost Small Business Growth and Efficiency
- Lowering VAT Threshold Risks Breaching Labour’s Manifesto, Warns Self-Employed Association
