UBER · News · 20261107N

UK VAT Assessment and Dispute

Uber Technologies, Inc · 2026-11-07 · Importance 69 · Surprise 54 · In source text

The UK tax authority HMRC demanded £2.6 billion from Uber in a revived dispute over VAT on rides. HMRC argued Uber could not use a tour-operator exemption to pay VAT only on its driver commission and said the disputed VAT on the full fare amounted to £1.4 billion for 2022–2024. The demands had been paused while Bolt pursued parallel litigation, but the Court of Appeal struck down Bolt’s challenge in summer 2026.

Key facts

• HMRC hit Uber with a £2.6bn bill after the company allegedly failed to pay tax on millions of rides. source
• HMRC said Uber's VAT liability amounted to £1.4bn between 2022 and 2024. source
• HMRC revived its dispute with Uber over how much VAT the company should charge on rides. source
• HMRC put its demands on hold after Bolt won legal victories in a parallel case, but the Court of Appeal struck down Bolt's challenge this summer. source
• Uber attempted to use a legal exemption designed for tour operators so it would pay VAT only on the cut it takes from drivers, generally a fraction of the total fare. source
• HMRC argued the exemption was illegal and demanded that Uber pay VAT on the entire fare. source
• Minicab operators such as Uber have been required to pay VAT on rides in London since a court defeat five years ago changed the company's legal relationship with drivers. source

Impact estimates