UBER LOSES UK SUPREME COURT APPEAL OVER TAX ON RIVAL APPS-Veezu Chief legal officer says it is a triumph for UK private hire sector

Uber has lost its Supreme Court appeal today against rival operators in a bid to make them subject to a 20% VAT charge on their profit margins outside of London.

Uber had sought a declaration that rival private-hire taxi operators enter into a contract with passengers, meaning operators must charge a 20% value-added tax (VAT) outside London, as Uber is required to do.

Uber brought the case after a 2021 Supreme Court ruling that Uber drivers were workers, eligible for minimum wage and holiday pay, and making Uber subject to VAT for rides.

Uber sought to have the same terms applied to rival operators, and the High Court ruled in its favour last year, the ruling applying to rides in England and Wales outside London, which has a different regulatory regime.

The ruling, however, was reversed by the Court of Appeal in July 2024 following a challenge by private hire operators Delta Taxis and platform Veezu. Uber further appealed to the Supreme Court, which today has unanimously dismissed the appeal, ruling that operators are not required to enter into a contract with passengers.

Veezu said the ruling avoided significant fare increases, with its chief legal officer, Nia Cooper, saying the decision was “a triumph for the UK private hire sector”. Delta Taxis’ lawyer, Layla Barke Jones, from Aaron & Partners, said a victory for Uber would have badly affected many private hire operators, further adding that “a crisis has been averted.”