The ‘gig economy’ in general, and the Uber case in particular demonstrates that the labour market has evolved and taxpayers can often morph between, or be simultaneously employed and self-employed.

However, if we thought the direct tax/NIC issues are complex, the VAT consequences for Uber, its drivers, and its customers - and indeed similar business models - take ‘complex’ to a whole new level. 

Unlike passenger transport in buses, trains and airplanes, the fares charged to passengers for taxi or private hire journeys by the end supplier are liable to VAT at the standard-rate.