Measure
Suppliers of private hire vehicle and taxi services will be excluded from the scope of the tour operators’ margin scheme (TOMS) from 2 January 2026, except where these are supplied in conjunction with certain other travel services.
This will ensure that all private hire vehicle operators in London, and those operating as principal nationally, will pay VAT in the same way.
Private hire vehicle operators and taxi services.
2 January 2026.
The government consulted on this issue and considered a number of possible options for reform. It remains to be seen how this approach will operate in practice.