""We are very concerned at the murmurings around a potential ' taxi tax ' in the upcoming Budget," she said. "The Supreme Court confirmed this summer that long-standing business models used by private hire operators remain lawful and that VAT is not automatically required. That outcome helped protect passengers from fare increases and allowed local businesses to operate sustainably." Barke-Jones"
"Barke-Jones said that forcing VAT on all fares would require a change in the law, overriding the Supreme Court's position and placing an unfair burden on small operators already running on tight margins. 'Most vitally, we must not lose sight of who this impacts,' she added. 'Private hire taxis are essential for elderly passengers, disabled people, lower-income households and others who rely on them for daily travel. These are the very groups who would feel any cost increase most sharply.'"
Layla Barke-Jones represented Delta Taxis in a Supreme Court case confirming private hire operators outside London are not automatically required to charge VAT on all fares. The ruling clarified rules for thousands of operators and protected passengers from potential fare increases. Reports indicate Chancellor Rachel Reeves may introduce mandatory VAT on private hire fares in the Autumn Budget. Forcing VAT on all fares would require a change in the law, override the court's position, and place an unfair burden on small operators with tight margins. Elderly, disabled and lower-income passengers would be disproportionately affected. Ministers are urged to consult widely, especially passenger groups, due to potential social and economic consequences.
Read at Business Matters
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