The Uber taxi business' UK VAT affairs are coming under close scrutiny. Jolyon Maugham QC is challenging Uber London Ltd in the High Court on the fact that he considers that the company should have issued him with a VAT receipt for his journey.
Uber does not charge VAT because it treats each of its drivers as a separate self employed business.
An employment appeal tribunal, Mr Y Aslam and Mr J Farrar v Ober B.V. Uber London Ltd and Uber Britannia Ltd, [2016] 2202550/2015 established that Uber’s workers are not self-employed for employment law purposes.
Mr Maugham therefore aserts that their turnover is that of Uber’s and if so, then Uber is trading above the VAT threshold. It is providing transportation services and so VAT should be charged.
Transport services for VAT are standard rated except where a vehicle can carry ten or more passengers.
