# Taxi firms crowdfund legal battle with Uber over VAT on fares in UK

## Road transport

### Taxi firms crowdfund legal battle with Uber over VAT on fares in UK

Minicab drivers say Uber’s bid to apply tax to all rides would put many out of business and leave people stranded

Two British taxi companies have launched a crowdfunding drive for the last leg of a lengthy legal battle with  that could result in higher cab fares.

Uber will seek, at a supreme court hearing in July, a ruling on contractual models that affect whether VAT applies to private-hire companies outside London, which it has argued would level the playing field across the UK.

However, the minicab industry has fought the move, which it said could raise the cost of taxi journeys outside London by at least 20%.

The private hire firms Delta Taxis from Liverpool and Veezu from Cardiff are attempting to raise £500,000 to sustain their legal battle. Costs already exceed £1m after high court cases in 2022 and 2023, and a court of appeal case in 2024.

Uber was forced to  booked through its app after  regarding its fares in London. It then  involving Sefton council in Merseyside – where Delta is based – over its terms for operators.

Private hire vehicle (PHV) companies have usually classed drivers as independent, self-employed contractors and so do not pay VAT.

The industry argues that regulatory change would disproportionately affect passengers who rely on cabs, such as elderly people and those with restricted mobility in areas with poor public transport. According to Veezu, its data shows that 43% of minicab trips are for medical, work, or educational reasons, rather than leisure.

The cab firms have said that many small operators could be forced out of business, affecting an estimated 25,000 self-employed drivers, leaving passengers with fewer or no services.

Paul McLaughlin of Delta Taxis said the appeal was a “David v Goliath moment”, adding: “This court case could have massive repercussions for PHV firms like us using the traditional agency model, which has been part of British culture for generations. If Uber win, it will add at least 20% to the cost of a private hire taxi fare outside of London … The impact will be felt far and wide.”



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