Oh, this is interesting - Veezu getting together with Uber and Bolt
And it seems Veezu is a 'ride-hailing app' now. So just about every operation of any size in the country must be a ride-hailing app. Which is what I've been saying for years now - if ABC Cars starts taking app bookings, does that make it a ride-hailing firm?
Well, according to the terminology used here, they would be...
But I wonder why Delta haven't come to the party?
Uber and Bolt warn of 15% fare increase from ‘taxi tax’ planhttps://www.thetimes.com/uk/politics/ar ... -p23m3tpl3The firms have asked Rachel Reeves not to impose VAT on private hire journeys, saying it would hit vulnerable passengers and put women’s safety at riskThe cost of Uber and other cab services could increase by more than 15 per cent if the chancellor pushes ahead with plans for a “taxi tax”.
The Treasury is mulling whether to levy 20 per cent VAT on all private hire vehicle journeys in the budget on November 26.
Executives at Uber, Bolt and Veezu — the three biggest ride-hailing apps in the UK — have written to Rachel Reeves urging her not to impose the tax. The industry claims this would represent a five-fold increase in tax.
Private hire operators do not pay VAT as the individual drivers are classed as independent, self-employed contractors and do not meet the required earnings threshold of £90,000 a year.
However, in a legal battle involving Uber, the High Court ruled that taxi firms, rather than drivers, held the contracts with passengers. This would mean that the taxi company, or app-based booking platform, would be liable for VAT.
In the letter to Reeves, which was sent last week, the bosses of the three companies write: “We are united in urging you not to impose an inflationary VAT increase that would hit vulnerable passengers by driving up the cost of fares for transport services which are an essential lifeline.”
The companies have argued that the tax should only be applied to a business’s cut of fares, which is between 15 per cent and 25 per cent, while HM Revenue & Customs has previously argued it should be the entire fare.
https://d9pqr17z0xv7rw.archive.is/DDup4 ... f9ced.webpImage: Alamy/The Times/Archive.isMost black cab journeys are not subject to VAT because the drivers are self-employed and remain under the VAT threshold. The ride-hailing apps are considered booking platforms and have revenues that vastly exceed it.
The letter from the platform executives said: “Fares would rise dramatically to cover the cost of a VAT hike. The impacts of this would be felt acutely by those who rely on minicabs and private hire vehicles in their daily lives.
“People with mobility issues and the elderly will become more isolated from their communities and find it harder to get to the shops and essential appointments, as they struggle with rising costs. Women’s groups, such as the Survivors Trust, have sounded the alarm too, warning the taxi tax would cause more people, especially women, to take risks with their safety.”
https://d9pqr17z0xv7rw.archive.is/DDup4 ... b89d3.webpImage: Alamy/The Times/Archive.isThe letter was signed by Andrew Brem, the UK general manager at Uber; Kimberly Hurd, the UK senior general manager of Bolt; and Nathan Bowles, the chief executive of Veezu.
HMRC launched a consultation on the issue in the summer last year and has said it will respond at the budget. The Treasury said: “We are reviewing feedback from our recent consultation and will publish our detailed response shortly.”
HMRC has stopped collecting VAT from Uber after Bolt won a legal victory against the tax authority in March. However, the chancellor could still use her budget to levy the tax on private hire journeys.
The ride-hailing app bosses argue that a taxi tax would have a “significant and long-lasting impact” on local economies “reducing footfall to hospitality and retail businesses and seriously impacting the night-time economy, all of whom are already struggling”.
They wrote: “We urge you to keep your party’s manifesto promise and resolve this issue by confirming you will not impose VAT on passenger fares, in order to protect the drivers that rely on the industry for their livelihoods and to prevent unaffordable fare hikes for passengers.”