VAT Ruling Impact: Bolt’s Victory and Future Implications for Private Hire Operators

• Bolt successfully defended its VAT liability in a decision by the Upper Tribunal on March 24, 2025.
• The decision impacts private hire operators and the future of VAT in the UK.
• Bolt acts as a principal in re-supplying passenger transport, buying services from self-employed drivers and re-supplying to customers.
• Bolt uses the tour operators margin scheme to reduce its VAT bill.
• HMRC’s challenge to this arrangement was unsuccessful at both the First-tier Tribunal and the Upper Tribunal.
• The decision supports Bolt’s VAT structure, taxing the margin between driver payment and passenger fare.
• The case is part of ongoing legal developments related to Uber’s worker status and licensing requirements.
• HM Treasury is expected to publish the outcome of a consultation on VAT liability for private hire journeys after a Supreme Court decision in Autumn 2025.
• Private hire operators outside of TfL’s jurisdiction can continue acting as agents for cash journeys.

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.

---

---