The High Court ruled that Uber’s drivers were compatible with the Private Hire Vehicles (London) Act 1998 and are now required to enter into contracts directly with their passengers and will be held liable for journeys taken while using their ride-hailing services.

The High Court case came after the Supreme Court ruled in February 2021 that Uber’s drivers were the ride hailing app’s employees. This meant that they were entitled to benefits such as sick pay and minimum wage.

The consequences of the case mean that Uber will now be required to pay VAT as its drivers are now classed as workers. Previously, drivers operated as self-employed which meant that, in the great majority of cases, its drivers were operating below the VAT registration threshold of £85,000.