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The Guardian - UK
The Guardian - UK
Technology
Simon Goodley

Uber rewrites contracts with drivers to avoid paying UK’s new ‘taxi tax’

An Uber taxi minicab on a UK street.
The move means drivers make a contract directly with their passengers – so they must charge any VAT due on the fare. Photograph: D Callcut/Alamy

Uber has swerved paying millions of pounds to the UK exchequer under Rachel Reeves’s new “taxi tax” after the ride-hailing app rewrote contracts with its drivers.

The move came as rules announced in November’s budget took effect, which adjusted how VAT is payable on minicab fares and would have resulted in the whole Uber fare becoming subject to the 20% sales tax.

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