There's been a couple of pieces like this knocking about, but I haven't bothered reading them.
Eventually couldn't resist the temptation, though, but isn't this largely nonsense?
For a start, I don't think it's all about England generally, but about London specifically.
And not just about Uber or 'ride-hailing' either
The London stuff is about the private hire booking legislation, therefore...
And neither of the two people quoted are anywhere near London...
Anyway, even ignoring the more technical stuff, the article has a slightly bizarre quality about it all, with the two people quoted seeming a bit random for this kind of stuff
Warning for anyone using Uber in England from Friday morning
https://www.birminghammail.co.uk/news/m ... d-32989238
From 2 January 2026, suppliers of private hire and taxi journeys will be excluded from the Tour Operators’ Margin Scheme (TOMS).
Uber passengers face an unwelcome change from Friday. From 2 January 2026, after Christmas, suppliers of private hire and taxi journeys will be excluded from the Tour Operators’ Margin Scheme (TOMS).
As HMRC explains: “This measure excludes suppliers of private hire and taxi journeys from being ‘tour operators’ for the purposes of the Tour Operators’ Margin Scheme.”
This means app trips will get more expensive – as 20% VAT is due on the full fare, not just the margin. Kate Underwood, Founder at Southampton-based Kate Underwood HR and Training, said: "If you ever needed proof that Rachel from Accounts has never tried getting a junior home safely at 11pm, this taxi tax is it.
"Small businesses use Uber because it is simple, cash free and safer. You see the driver, the reg and the route, and there is a record if anything goes wrong.
"That is not a luxury, that is how you do duty of care without losing your mind. Now those trips are going up in price, not because drivers got a pay rise, but because the rules changed and someone spotted a 'loophole'.
"On its own it is a bit more VAT. Add it to higher wages, NI, pensions, frozen thresholds and everything else, and the cost of being a decent employer just keeps snowballing. If Uber gets too pricey, the answer is not shoving staff back on night buses.
“It is setting up accounts with vetted local firms, getting texted car details and insisting on a quick “home safe” message. We will keep doing the right thing. We would just quite like Rachel to stop making it more expensive every single time."
Scott Gallacher, Director at Leicester-based Rowley Turton, added: "Although the Government presents this as a technical VAT correction, in practice it appears as an Uber tax that will drive up ride-hailing costs by 15%–20%.
"This is yet another example of intergenerational unfairness, with the youngest – who already face licensing backlogs, unaffordable car insurance, and squeezed living costs – now paying more simply to travel safely.
"This change also hits people in rural and poorly served areas who rely on apps because they simply don’t have other transport options. It’s a policy that ends up punishing the very groups with the fewest alternatives."
