VEEZU: VAT TREATMENT OF PHVs VAT
treatment of private hire vehicles
Consultation WHAT WE NEED TO DO NEXT
With all the inconsistency and uncertainty that has been caused by the High Court Ruling, I think it’s worth establishing what we should all be doing, and not doing, now that the Court of Appeal ruling has been delivered.
PRIVATE HIRE VEHICLE OPERATORS DO:
• respond to the VAT consultation and continue to lobby your local MPs on the VAT issues and their implications. This is the only opportunity we may have to influence Government and if Uber was to appeal successfully we would regret not doing so.
• educate everyone on the benefits that this industry brings to our communities. In many places we are the only reliable, cost-effective mode of transport that is available 24/7.
DON’T: • breathe a sigh of relief and think it’s all over.
• ignore the opportunity to inform and shape govern- ment policy. LOCAL LICENSING AUTHORITIES
DO:
• review the Court of Appeal ruling. It has been clear on the interpretation of the 1976 Act.
• work with private hire operators licensed in your area so that you understand their business models and they understand your licensing policies.
DON’T: • make any changes to licensing conditions that ask
PHTM AUGUST 2024
So, at the cost of sounding repetitive - make sure you share your views and respond to the VAT consultation:
https://shorturl.at/yOcCu
Responses should be sent to:
phvovatconsultation@hmrc.gov.uk by 8 August.
Seeking consistency, stability and certainty does not mean that we are afraid of change. This industry has seen much of it over the years and will continue to do so. The introduction of reporting rules for UK digital platform operators comes into force in January 2025 and could have cost, administrative and software impacts on the entire industry.
No, it is not change that concerns us, it is the way that change comes about that is the key factor.
We want to collaborate with government, local authorities, communities and other stakeholders to ensure that any change to the industry is the right one for all of us. The VAT consultation is a great place to start as it opens up a discussion about the different models in the industry, the local and regional variations in the way PHV services are used and the vital role that PHVs play in the transport network.
private hire operators to show they have a contract in place with the passenger.
• exert energy on expensive, time consuming and unnecessary policy changes.
SUPPLIERS/DISPATCH SOFTWARE COMPANIES: DO:
• respond to the government VAT consultation. You rely on a thriving PHV industry, and you have vital knowledge that can help shape the outcome.
DON’T
• forget that private hire operators are not homogenous and their needs change depending on their business models, locations and the types of services they offer.
DON’T BE AFRAID OF CHANGE
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