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Uber: a VAT problem?
Key points
- While this case mainly concerns employment law it has important VAT implications.
- In the UK many Uber drivers will not breach the VAT registration threshold – the ride is VAT-free and the Treasury does not collect from Uber or the drivers.
- Since Uber was held to be acting as principal it is difficult to see that a contradictory decision could be reached if the court were to review the VAT position.
- A Good Law Project press release of October 2020 claims that HMRC has assessed Uber for VAT of £1.5bn.
On 19 February 2021 the Supreme Court handed down its judgment in the case of Uber BV and others v Aslam and others [2021 UKSC 5] upholding the decision of the Court of Appeal that Uber drivers are workers for employment law purposes rather than independent contractors.
The decision confers significant additional rights on drivers such...
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