This means that private hire and taxi operators across England and Wales would have to charge 20% VAT on taxi fares as the ruling means that when they enter into a contract with their passengers.

The decision follows an Uber case at the Supreme Court in 2021, which ruled that Uber’s drivers were not self-employed, but were instead classed as workers, meaning they were liable to pay VAT on the fares they collected.

Following this ruling, and in a bid to even the playing field, Uber went to court to argue that this approach should cover all minicab operators.