Taxi Driver Online

the ONLY solution to this is government legislation putting the issue to bed once and for all.

But it won't happen because those that stand to benefit make the right donations.

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Taxis Are Public Transport too

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I can see the outcome being what the process was before Uber - v - Sefton, i.e. if the firm took a cut from the job then VAT was payable, but if the firm didn't and merely acted as a delivery agent then VAT wouldn't be payable.

I know that's not perfect and would affect the app companies big time, but it worked for many years without any problems so it is/was doable.

Or make all PH drivers operators, and then VAT will only be payable if drivers exceed the VAT threshold.

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IDFIMH

must be a slow news day some of fleet streets lowest are running pieces on this again

the sun
express


not worth putting articles up but in a nutshell "campaigners!" are calling for Hunt the *^!* to intervene and over rule the court judgement

The campaigners are a group called stop the taxi tax who are allegedly disgruntled passengers !

but I think we can guess who is behind them.

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Taxis Are Public Transport too

Join the campaign to get April fools jokes banned for 364 days a year !

Operators in Northern Ireland not best pleased at the thought of the 20% VAT issue.

NI firms concerned about new licencing proposals

https://www.bbc.co.uk/news/uk-northern-ireland-68781116

Taxi operators have warned proposed licensing changes in Northern Ireland could have a "devastating" impact on the industry.

It comes after a Department for Infrastructure proposal to change taxi operators' licensing regulations.

This follows court cases in England and Wales.

One of the implications of the proposals could be a 20% increase on average fare prices.

Stephen Anton from Fonacab, representing the Licensed Taxi Operators' Association, told a Stormont committee there was a lack of understanding of the implications the proposals could have locally, which would mean higher prices and potential closures.

"If implemented, this could increase taxi fares by 20% and prevent those who are most in need from accessing taxi services," he said.

"This also has the potential to close many operators down permanently."

The committee heard that in 2014 there were 16,000 taxi licences, by 2021 that number had fallen to 8,500 and by December 2023 it was down to 7,500.

Problem for smaller operators

Mr Anton said that was the number of licences rather than the number of active drivers, which in January was estimated at about 5,000 drivers - a figure he said should be about 50% higher.

He said the proposed legal changes would result in taxi operators or drivers who have total annual fares of £90,000 or above having to charge VAT on all bookings.

"To put that into context, a taxi operator who has as little as two drivers, each lifting fares of say £900 per week - that's your £90,000 turnover, that's your threshold for VAT already met," he said.

"So any taxi operator with two drivers or above will automatically be pulled into this and that's the majority of operators in Northern Ireland.

"Scrutiny is not a bad thing and everyone has to pay their way, but the problem is many of the small operators do not have the administration capability to be to handle the returns that we're talking about here.

"So as well as putting the price up, it has the potential to put a lot of these smaller operators off the road."

His concerns were echoed by Cathy Mallie from Clanrye Taxis in Newry, who told the committee people in rural areas struggled to get taxis.

"We have lost 50% of our drivers since Covid-19 and we have never recovered from that," she said.

She added she found it difficult to keep drivers in the industry - with all of them over the age of 60, including her father who is 75 - and she warned further changes would be "devastating".

"If this VAT element comes in, that will definitely call it a day," she told the committee.

"We financially couldn't afford to support the administration and the back offices, we wouldn't have the finances and we're really struggling and in dire straits at the minute, especially in Newry."

"It's not the tourist side of things that we worry about, it's the local people and local runs.

"It's the woman who is going to get her pension, somebody going to the hospital for an appointment or the woman who wants you to take her 4 year old to school because she has a disabled child at home, it's the trust they place in us."

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IDFIMH

As I was banging on at the time of the Sefton case or whatever, if VAT became chargeable in England, why would Scotland be excluded just because it's different legislation?

So don't forget where you read it first - you can call me Cassandra-Stu again

Funny thing, though, I thought someone in Scotland more likely to raise it first than NI

But is anyone aware of anyone in the Scottish trade raising the issue with regard to Scotland and the VAT implications of Sefton? No, me neither

Think the bosses of the Scottish trade are only interested in getting more drivers in the trade to worry about anything else.

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IDFIMH

Don't drivers see that there are advantages of being VAT registered even below the threshold. Yes, their fares will be 20% higher, but things like their fuel bills and repairs will be 20% cheaper as they can offset purchases against sales. What they have to actually pay is the difference between the 2 amounts.Any punters who are regitered can claim back the 20% as a business expense so it won't worry them too much.

I'm still VAT registered as some of my work is renting my vintage buses out and bus travel is zero-rated. I get quite a bit back from the VAT man every quarter, some of the spares I sell go abroad, and they are zero rated. Shame is, my business rarely makes a profit and these days is below the threshold.

I worked it out that being VAT registered would mean despite VAT back on fuel etc. a £5000 a year net loss unless you bought a new car every year plus the extra paperwork headache

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If you are not VAT registered you claim the full price of everything that has VAT added so in effect being VAT registered doesn't actually save you the VAT it just meas that you get the VAT back through lower profits rather than the VAT man. Meanwhile you have to account for it on fares. It wouldn't take long to get to your £5,000 loss.

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