- The UK government is banning ride-hailing apps like Bolt and Uber from using the Tour Operators Margin Scheme (TOMS) to reduce their VAT on taxi fares.
- From January 2, 2026, all private hire vehicle operators in London and those operating as ‘principal’ nationally must pay VAT in the standard way.
- This change follows years of legal disputes between HMRC and ride-hailing companies over VAT payments.
- Billions of pounds in disputed VAT were at stake if HMRC had lost these cases.
- The government’s move ensures ride-hailing apps can no longer exploit TOMS to lower their VAT liabilities.
Source: accountancydaily.co
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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