The decision in the Uber case could trigger VAT shake-up even after private hire operators won with concerns about new ‘taxi tax’ for the platform and gig economy, says Layla Barke-Jones, dispute resolution partner at Aaron & Partners
A pivotal Supreme Court ruling this summer has brought long-awaited certainty on VAT obligations for private hire operators across England and Wales and may have averted a wave of upheaval for both the taxi industry and the advisers who support them.
However, just weeks later, signs are emerging that the chancellor may be preparing to revisit the issue at the Budget. Proposals for a new VAT ‘taxi tax’ on all fares – even those currently exempt – have triggered concern that some of the most vulnerable people in society could end up footing the bill.
For now, tax professionals can take confidence in what the Court has clarified in the Delta Merseyside & Or v Uber [2025] UKSC 31 case. But they also need to stay alert: the debate around platform VAT is far from over.
