Overview

• The Supreme Court unanimously dismissed Uber’s appeal, ruling that private-hire operators do not enter direct contracts with passengers.
• Operators outside London are required to charge 20% VAT only on their profit margins, not on the full fare paid by customers.
• The judgment establishes a consistent tax framework for private-hire services across England and Wales and may shape future business models.
• The ruling brings an end to a multiyear legal battle that saw conflicting High Court and Court of Appeal decisions since 2023.
• HM Revenue & Customs has secured permission to appeal a similar VAT margin ruling in the Bolt case, extending the debate over ride-hailing taxation.