Taxi Driver Online

This is from Treasury written questions

Two separate questions, one about fares and driver earnings, and the second adding in PHD numbers.

Neither of which is really answered, surprise, surprise.

But you'd think a more relevant and pointed question might have been about the thresholds and how many operators it's thought would be affected

But, of course, even that question wouldn't have been answered directly...



Richard Holden, Shadow Secretary of State for Transport

To ask the Chancellor of the exchequer, what assessment he has made of the potential impact of the proposed VAT changes for private hire vehicle operators on (a) passenger fares and (b) drivers' earnings.

To ask the Chancellor of the exchequer, what assessment he has made of the potential impact of the proposed changes to VAT treatment of large private hire vehicle operators from January 2028 on (a) the level of passenger fares and (b) the number of private hire drivers.


James Murray, Financial Secretary to the Treasury and Paymaster General

At Budget 2026 the Government announced that it will deem the larger operators with annual fare turnover above a certain threshold liable for 20% VAT on the full value of their fares from 2 January 2028.

The government will shortly publish a consultation to confirm the level of annual fare turnover threshold this will apply to.

The measure itself does not place any new VAT obligations on drivers nor does it change existing employment or worker status protections. Decisions about fares, commission rates and commercial arrangements are matters for individual businesses.