UBER GIVEN PERMISSION TO APPEAL COURT OF APPEAL RULING UNDER THREAT
Layla Barke-Jones Dispute Resolution Partner Aaron & Partners
www.aaronandpartners.com
BACKGROUND
In July the Court of Appeal handed down judgement in just six days, overturning the decision from the High Court in Uber’s favour regarding the relationship required between operator and passenger. Despite the speed and strength of the judgement, the Supreme Court has now granted Uber’s request to re- examine the issue before them next year. This once again creates a jeopardy for operators, drivers and passengers in England and Wales outside of London.
This case has rumbled on since March 2022, when Uber pursued a claim against Sefton Council, hence the case is frequently referred to as Uber v Sefton. Although Sefton Council took a neutral role (with Uber agreeing to pay Sefton’s legal fees) before dropping out once the case proceeded to the Court of Appeal. Uber applied for a declaration that in order to operate lawfully the licensing act; the Local Government (Miscellaneous Provisions) Act 1976, required a licensed operator who accepts a booking from a passenger to enter as principal into a contractual obligation with the passenger to provide the journey which is the subject of the booking. The case followed an equivalent declaration given in relation to the act which governs private hire licensing in London. In both the London case and the case for the rest of England and Wales the declaration was granted by the High Court.
The decisions caused shockwaves through the private hire industry with the government confirming that the decisions meant that HMRC would require operators to charge, collect and pay VAT on the fares. The government of the day launched the VAT consultation
“ 6
to consider how to minimise the potential impacts on the industry and on the public.
JULY 2024: –DELTA/VEEZU WIN APPEAL
However, in July of this year, operators Delta Merseyside and Veezu appealed up to the Court of Appeal and the Court of Appeal promptly overturned the previous decision in relation to England and Wales outside London. The decision turned on the specific wording of the 1976 Act so only applies outside of London (which has different legislation).
That judgement restored the position which had always been adopted by local authorities, HMRC and operators since the 1976 Act came into force. It allowed operators to continue to choose the business model which suited them, including the widely adopted agency model where operators use self-employed drivers to carry out the services. The industry, or at least the industry outside of London, breathed a collective sigh of relief and awaited the outcome of the VAT consultation.
NOVEMBER 2024: UBER GRANTED PERMISSION TO APPEAL
Uber did not accept the decision and asked the Court of Appeal for permission to appeal its decision; the Court of Appeal quickly refused. However, on 6 November 2024 the Supreme Court disagreed and granted Uber its request to appeal the decision and once again argue over the interpretation of the wording of the 1976 Act before the courts. Three judges from the Supreme Court granted permission, finding both that the case was of general public importance and that Uber’s arguments raised an arguable point of law. So, we are set to go through those arguments again, this time before the judges of the Supreme Court. The stakes couldn’t be higher, this will be the final word on the issue.
The stakes couldn’t be higher, this will be the final word on the issue.
” DECEMBER 2024 PHTM
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