Uber has swerved paying millions of pounds to the UK exchequer under Rachel Reeves’s new “taxi tax” after the ride-hailing app rewrote contracts with its drivers.
The move came as rules announced in November’s budget took effect, which adjusted how VAT is payable on minicab fares and would have resulted in the whole Uber fare becoming subject to the 20% sales tax.
In November, Reeves told the Commons the changes would end up “protecting around £700m of tax revenue each year”.
However, updated terms issued to Uber drivers from January 2026 mean the technology firm will act as an agent, rather than as the supplier, of transport services outside London. The move means drivers make a contract directly with their passengers – so they must charge any VAT due on the fare, while Uber only adds VAT to its commission.
Tell me more about how taxes are bad and corporations deserve the right to avoid paying them while benefiting from the countries they operate in.
I’m not saying that taxes are bad. I’m saying that if the government says “there’s a new tax you have to pay if you do that” and you say “ok, then I won’t do that,” you have done nothing wrong. You have a duty to obey the law, but no duty to maximize government revenue.
Oh yeah, totally not wrong to change the legal definitions of your contracts the day new legislation comes out designed to claw back the taxes you have been avoiding the whole time without that new legislation.
Can you please take your corporate ski poling else where?
Seriously, us regular folk can’t just reclassify ourselves and dodge taxes (not that we should if we could). We can’t suddenly call our house a contracted asset and avoid taxes or something.
Companies shouldn’t be able to either.
You can! In the US, just declare all of it as a self-employed home office and then it’s a business expense!
Note that like Uber’s actions here, it’s considered tax evasion and illegal.
Agreed.
Honestly it this point I think a full scale tax strike would send the message.
We the people of [Insert country] refuse to pay a [lowest currency of country] in taxes until every single person and corporation (Which are legally declared people in most countries, in case you didn’t know) pays their fair share and the entire fund goes to supporting our basic needs and infrastructure as a society.
Everyone should have Shelter, Food, Water, Medical Care, Security, and Education fully covered for simply existing in society, and this would be a good step one.