The latest round in a whirlwind of court activity centred on gig platform owners sees HMRC lose its appeal at the Upper Tribunal.

Judges at the Upper Tribunal dismissed HMRC’s argument that the First Tier Tribunal (FTT) had ‘erred in law’, noting ‘to the extent that there are errors of law in the FTT’s reasons, they are immaterial’.

The tribunal confirmed that Bolt Services UK, the Estonian owned taxi ride hailing app, is a principal and as such is allowed to use the Tour Operators’ Margin Scheme (TOMS) to report its activity, thereby reducing VAT liability.

HMRC appealed the decision of the First Tier Tribunal (FTT), issued in December 2023, arguing that the tribunal ‘erred in law’ in ruling that Bolt’s supplies were not the same as a tour operator or travel agent but ‘nonetheless fell within the TOMS by virtue simply of being a form of passenger transport’.

TOMS is