The UK’s tax authority, HM Revenue & Customs (HMRC), is demanding that Uber pay £2.6 billion in unpaid VAT on its passenger transport services. HMRC initially estimated the arrears at £1.4 billion for the 2022–2024 period. However, the latest documents—which the company is required to publish as a publicly traded entity—reveal that this claim has grown by an additional £1.2 billion.
The case concerns tax optimization strategies employed by both Uber and Bolt. Both companies utilized a tax exemption intended for travel agencies, paying VAT only on their commission rather than on the full price of the ride. The tax authority has deemed this an unlawful circumvention of regulations.
Uber has stated that it will pay the massive outstanding amount, while simultaneously planning to challenge the decision through the appeals process. At the same time, the company issued a statement—in typical platform-economy fashion—warning the public that paying the full VAT would lead to higher prices for customers and lower earnings for drivers.
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