Unlock the digestive of free editor
Roula Khalaf, the FT editor, chooses her favorite stories in this weekly newsletter.
The UK tax authorities have banned the collection of tens of millions of pounds a month in controversial VAT payments by Uber, after a return to a linked battle with the European rival of Ridsharying Bolt.
The income and customs of his Majesty have fallen its insistence that Uber continues to pay VAT at the full cost of travel, rather than to cut the company tariff alone, until the case is resolved in court, according to a note in the latest quarterly financial statements.
Uber and Bolt both claim that they have to pay VAT only in cutting them into a fee according to the same rules that apply to tour operators, in a dispute that has increased financial and legal uncertainty depending on the UK Ridsharying.
The industry position took an incentive in March when the UK Upper Tribunal for Taxes decided that Bolt was really covered by the margin of tour operators, supporting a lower tribunal decision. HMRC said he was disappointed with the decision and was requesting permission to appeal.
HMRC has asked Uber Pay VAT for entire tariffs since 2022 when the company was forced by a UK Supreme Court ruling to begin treatment of drivers as employees. The quarter, after Uber pays the lowest amount he says, the agency sends a “estimate” that reaches more than £ 100m to cover the change.
Uber so far needs to pay the ratings “in order to continue with the appeal process”, according to successive quarterly records. The controversial amount it has now paid reaches 1.4bn £. “Payments do not represent our acceptance of estimates,” she says.
The company’s latest registration on Wednesday, however, revealed that the tax authorities had mitigated their position. “HMRC has expressed their intention of not implementing assessments in anticipation of determining the appeal of a competitor on a related issue,” Uber said.
HMRC refused to comment on the change of his position, citing the confidentiality of taxpayers, but said: “When we appeal to a reverse court decision, we continue to take steps to protect income to ensure that we can collect the tax because of whether it is successful.”
Uber refused to comment beyond its appearance.
The company generated approximately £ 5.3 billion in UK income in 2023, according to its latest public records, about 18 percent of its revenue worldwide.
Uber began operating in the UK in 2012, three years after it was founded, but has faced fierce opposition from the most traditional taxi drivers. It is the subject of a multimillion pound lawsuit by the leaders of the black cable in London, who claim it unjustly received a license from transport for London.
Uber said the lawsuit was based on claims “completely unfounded”.
