Readers’ forum: Is there VAT on Uber taxi rides?

One of my clients is a legal firm that – post pandemic – has been doing a lot of visits to the premises and homes of their own clients. In many cases they use the taxi app Uber for their travel to avoid parking problems.

My understanding is that Uber must now account for a VAT rate of 20% on their fees following a lengthy litigation process.

This is because Uber – rather than the self-employed drivers they use – is now making the supply of passenger transport to the traveller and is registered for VAT.

The drivers previously supplied the travel but traded below the £85 000 registration threshold so did not charge VAT.

However my client tells me that when members of staff download an invoice for their trip there is no reference to VAT being charged by Uber...