Independent VAT Consultant
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Who's waiting for accountancy's version of Uber?
iStock_Uber car_Michael Krinke
Who's waiting for accountancy's version of Uber?

Uber faces £1.5bn VAT crisis

by

HMRC is reported to have raised a £1.5bn VAT assessment for Uber in the UK. Neil Warren investigates how Uber is likely to respond.

6th Nov 2020
Independent VAT Consultant
Columnist
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According to recent press reports HMRC sent Uber in the UK a £1.5bn VAT assessment. 

The tax bill for the internet ride-sharing giant arrived at a time when HMRC enjoying some success at increasing the tax yield of businesses that sell services where the internet is involved.

My recent article VAT and trading online: Part 1 reported that VAT is now payable on 100% of payments received through both the Only Fans and Any Answers Ltd websites, rather than the net commissions retained by the site owners.

But these victories would be small beer for HMRC if the same outcome were to be applied to UK taxi rides carried out through the well-known Uber app. Is the department aiming for an internet hat-trick?

According to recent press reports HMRC sent Uber in the UK a £1.5bn VAT assessment. 

The tax bill for the internet ride-sharing giant arrived at a time when HMRC enjoying some success at increasing the tax yield of businesses that sell services where the internet is involved.

My recent article VAT and trading online: Part 1 reported that VAT is now payable on 100% of payments received through both the Only Fans and Any Answers Ltd websites, rather than the net commissions retained by the site owners.

But these victories would be small beer for HMRC if the same outcome were to be applied to UK taxi rides carried out through the well-known Uber app. Is the department aiming for an internet hat-trick?

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By Steve99
06th Nov 2020 16:04

HMRC's vat notice 700/25 taxis and private hire makes good reading on the subject...

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