Uber faces £1.5bn VAT crisis

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?