Private hire vehicle operators

The measure

Supplies of passenger transport services by taxi or private hire vehicle supplied through an agent will be deemed to be made by the agent, and not the driver, for VAT purposes. This means that private hire vehicle operators, with annual fare turnover above a certain threshold, will be liable for VAT on the full value of their fares. The government will publish a consultation on the design and implementation of this policy and on the level of the threshold, with £50m in annual fare revenue as the lead option.

Who will be affected?

Private hire vehicle operators.

When will the measure come into effect?

2 January 2028