VAT Consultation Outcome

Today HM Treasury has published the outcome of its ‘Consultation on the VAT Treatment of Private Hire Vehicles‘.  It follows a consultation into the potential tax implications of the judgements in, as was, Uber Britannia Limited v Sefton Borough Council [2023] EWHC 1975 (KB) and Uber London Limited v Transport for London [2021] EWHC 3290 (Admin) on the private hire sector.  The Government has decided, in respect of the consultation proposals, not to amend VAT legislation or introduce a new margin scheme or reduce the sector rate.  Instead it will however, legislate to exclude the trade from the Tour Operators’ Margin Scheme (TOMS) and keep legislation affecting the trade under review.