HM Revenue and Customs could be forced to repay almost £500m to Uber after a legal victory over the taxman by a rival minicab app.
Memory’s a bit hazy as I don’t really pay attention to Jololyon all that much. But wasn’t he behind that Uber case over VAT?
Uber has argued that VAT should only be applied on the fees the company charges drivers, typically 25pc of a journey, while HMRC has said it should be applied to the full cost of a ride.
In the tax tribunal, Judge Greg Sinfield ruled that “mobile ride-hailing services” such as Bolt should be treated under the Tour Operators Margin Scheme, designed for holiday companies such as travel agents.
The ruling states that the company should only pay VAT on the company’s own fees, rather than the entire journey cost.
Seems reasonable enough to me even as I admit to no expertise at all in the law.