United Kingdom: VAT on Full Passenger Fares for Private Hire Vehicles

The government plans legislation for larger private hire vehicle operators so that, where they act as agents, they are treated as making the passenger transport supplies themselves.
Affected operators would have to account for VAT on the full passenger fare, not just on their commission.
The proposed rules are intended to apply from 2 January 2028.
An annual fare turnover threshold of £50 million is being considered, but the final threshold and mechanics are still subject to consultation.
The change could materially increase VAT liabilities and may require operators to review pricing, contracts, and VAT exposure.

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.