{"id":991567,"date":"2026-02-23T14:18:53","date_gmt":"2026-02-23T14:18:53","guid":{"rendered":"https:\/\/ukpostcode.org\/content\/?p=991567"},"modified":"2026-02-23T14:18:53","modified_gmt":"2026-02-23T14:18:53","slug":"uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget","status":"publish","type":"post","link":"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/","title":{"rendered":"Uber UK says some drivers may benefit from VAT registration post-budget"},"content":{"rendered":"<p>&nbsp;<\/p>\n<hr \/>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#What_Happened_%E2%80%94_VAT_Changes_After_the_Budget\" title=\"What Happened \u2014 VAT Changes After the Budget\">What Happened \u2014 VAT Changes After the Budget<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#Uber_UKs_Key_Comment_on_the_Impact\" title=\"Uber UK\u2019s Key Comment on the Impact\">Uber UK\u2019s Key Comment on the Impact<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#Why_This_Matters_for_Drivers\" title=\"Why This Matters for Drivers\">Why This Matters for Drivers<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#_1_Historic_VAT_Rules_Changed\" title=\"\u00a01. Historic VAT Rules Changed\">\u00a01. Historic VAT Rules Changed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#_2_Drivers_Might_Choose_VAT_Registration\" title=\"\u00a02. Drivers Might Choose VAT Registration\">\u00a02. Drivers Might Choose VAT Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#_3_Potential_to_Reduce_Costs\" title=\"\u00a03. Potential to Reduce Costs\">\u00a03. Potential to Reduce Costs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#Industry_Context_Reaction\" title=\"Industry Context &amp; Reaction\">Industry Context &amp; Reaction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#Important_Considerations_for_Drivers\" title=\"Important Considerations for Drivers\">Important Considerations for Drivers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#1_What_Changed_After_the_Autumn_Budget\" title=\"1. What Changed After the Autumn Budget\">1. What Changed After the Autumn Budget<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#2_Case_London_Drivers_VAT_Registration\" title=\"2. Case: London Drivers &amp; VAT Registration\">2. Case: London Drivers &amp; VAT Registration<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#Situation\" title=\"Situation\">Situation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#Uber_UKs_View_Andrew_Brem\" title=\"Uber UK\u2019s View (Andrew Brem)\">Uber UK\u2019s View (Andrew Brem)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#3_Comments_from_Uber_UK_Leadership\" title=\"3. Comments from Uber UK Leadership\">3. Comments from Uber UK Leadership<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#Andrew_Brem_on_Budget_Changes\" title=\"Andrew Brem on Budget Changes\">Andrew Brem on Budget Changes<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#4_Practical_Considerations_for_Drivers\" title=\"4. Practical Considerations for Drivers\">4. Practical Considerations for Drivers<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#When_VAT_Helps\" title=\"When VAT Helps\">When VAT Helps<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#What_It_Requires\" title=\"What It Requires\">What It Requires<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#5_Wider_Industry_Context_Reactions\" title=\"5. Wider Industry Context &amp; Reactions\">5. Wider Industry Context &amp; Reactions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/ukpostcode.org\/content\/uber-uk-says-some-drivers-may-benefit-from-vat-registration-post-budget\/#Summary_Key_Takeaways\" title=\"Summary: Key Takeaways\">Summary: Key Takeaways<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Happened_%E2%80%94_VAT_Changes_After_the_Budget\"><\/span><strong>What Happened \u2014 VAT Changes After the Budget<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the most recent UK <strong>Autumn Budget<\/strong>, the government confirmed that <strong>full-rate VAT (20 %) will now apply to private hire vehicle trips<\/strong> \u2014 closing the earlier VAT treatment under the <em>Tour Operators Margin Scheme (TOMS)<\/em> that allowed ride-hailing platforms to account for VAT on a smaller margin. (<a title=\"UK AUTUMN BUDGET\" href=\"https:\/\/newrychamber.com\/wp-content\/uploads\/2025\/11\/AAB-UK-Autumn-Budget-Summary-2025-1.pdf?utm_source=chatgpt.com\">Newry Chamber<\/a>)<\/p>\n<p>This change, effective from <strong>2 January 2026<\/strong>, means that platforms operating private hire services (including Uber) and drivers providing transport services may now deal with VAT in a new way:<\/p>\n<ul>\n<li>If <strong>drivers earn above the VAT registration threshold<\/strong> (currently \u00a390,000), they must register for VAT.<\/li>\n<li>Even drivers below the threshold may find it <em>advantageous<\/em> to register voluntarily under certain VAT schemes (e.g., the flat-rate scheme) depending on their costs and charges. (<a title=\"Uber UK General Manager says some drivers may be \u2018better off\u2019 registering for VAT after Budget change\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<\/ul>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Uber_UKs_Key_Comment_on_the_Impact\"><\/span><strong>Uber UK\u2019s Key Comment on the Impact<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Andrew Brem<\/strong>, General Manager at Uber UK, said that <strong>many London private-hire drivers could be financially better off registering for VAT<\/strong> following the budget changes \u2014 especially if they take advantage of schemes such as the <strong>VAT Flat Rate Scheme<\/strong>. (<a title=\"Uber UK General Manager says some drivers may be \u2018better off\u2019 registering for VAT after Budget change\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/p>\n<p>His point is that depending on how much a driver earns and what expenses they can claim, being VAT-registered <em>may reduce their net tax burden overall<\/em> or allow them to reclaim input VAT on business expenses. (<a title=\"Uber UK General Manager says some drivers may be \u2018better off\u2019 registering for VAT after Budget change\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/p>\n<p>That doesn\u2019t mean <em>all<\/em> drivers should register \u2014 it depends on individual earnings and cost structures \u2014 but some could see a financial benefit. (<a title=\"Uber UK General Manager says some drivers may be \u2018better off\u2019 registering for VAT after Budget change\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Why_This_Matters_for_Drivers\"><\/span><strong>Why This Matters for Drivers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Here\u2019s why VAT and the Budget change are significant for drivers:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"_1_Historic_VAT_Rules_Changed\"><\/span>\u00a01. <strong>Historic VAT Rules Changed<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Previously, many ride-sharing trips were taxed under TOMS, meaning VAT was applied only on the operator\u2019s margin and not on full fare. From early 2026 this is no longer allowed for private hire services. (<a title=\"UK AUTUMN BUDGET\" href=\"https:\/\/newrychamber.com\/wp-content\/uploads\/2025\/11\/AAB-UK-Autumn-Budget-Summary-2025-1.pdf?utm_source=chatgpt.com\">Newry Chamber<\/a>)<\/p>\n<h3><span class=\"ez-toc-section\" id=\"_2_Drivers_Might_Choose_VAT_Registration\"><\/span>\u00a02. <strong>Drivers Might Choose VAT Registration<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If a driver\u2019s gross income <em>exceeds the VAT registration threshold<\/em> (\u00a390,000), they <em>must<\/em> register for VAT. But even those below the threshold might benefit by registering voluntarily \u2014 particularly if they:<\/p>\n<ul>\n<li>Have substantial business expenses with reclaimable VAT<\/li>\n<li>Use the flat rate VAT scheme to manage tax more predictably. (<a title=\"Uber UK General Manager says some drivers may be \u2018better off\u2019 registering for VAT after Budget change\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"_3_Potential_to_Reduce_Costs\"><\/span>\u00a03. <strong>Potential to Reduce Costs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Some drivers\u2019 expenses (like fuel, vehicle servicing, insurance) include VAT. Being registered could let them <em>reclaim VAT on those costs<\/em>, which may offset the tax they need to pay. (<a title=\"Uber UK General Manager says some drivers may be \u2018better off\u2019 registering for VAT after Budget change\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Industry_Context_Reaction\"><\/span><strong>Industry Context &amp; Reaction<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>The VAT changes follow broader tax policy moves to simplify the taxation of private hire services and ensure consistent VAT collection across the sector. (<a title=\"UK AUTUMN BUDGET\" href=\"https:\/\/newrychamber.com\/wp-content\/uploads\/2025\/11\/AAB-UK-Autumn-Budget-Summary-2025-1.pdf?utm_source=chatgpt.com\">Newry Chamber<\/a>)<\/li>\n<li>Other trade and industry voices have debated this change, with some arguing it could increase fares for passengers and affect driver earnings. (<a title=\"Taxi costs in London set to soar as Chancellor announces new tax on minicabs\" href=\"https:\/\/www.standard.co.uk\/news\/politics\/taxi-vat-london-uber-bolt-chancellor-budget-b1259956.html?utm_source=chatgpt.com\">The Standard<\/a>)<\/li>\n<li>Platforms like Uber have adapted contract terms to manage VAT exposure (e.g., by clarifying when they act as agent vs supplier), affecting how and when VAT applies. (<a title=\"Uber rewrites contracts with drivers to avoid paying UK\u2019s new \u2018taxi tax\u2019\" href=\"https:\/\/www.theguardian.com\/technology\/2026\/jan\/02\/uber-avoids-new-uk-taxi-tax-rewriting-driver-contracts?utm_source=chatgpt.com\">The Guardian<\/a>)<\/li>\n<\/ul>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Important_Considerations_for_Drivers\"><\/span><strong>Important Considerations for Drivers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>VAT registration is mandatory<\/strong> once income exceeds the threshold, but it can also be <strong>voluntary<\/strong> below it. (<a title=\"Uber UK General Manager says some drivers may be \u2018better off\u2019 registering for VAT after Budget change\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<br \/>\nDrivers should consider the <strong>VAT Flat Rate Scheme<\/strong> or regular VAT accounting depending on their expenses. (<a title=\"Uber UK General Manager says some drivers may be \u2018better off\u2019 registering for VAT after Budget change\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<br \/>\nConsulting a tax professional can help drivers decide whether registration <em>improves their finances<\/em>. (<a title=\"Uber UK General Manager says some drivers may be \u2018better off\u2019 registering for VAT after Budget change\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/p>\n<hr \/>\n<p><strong>In summary:<\/strong> Following recent UK Budget rules that expanded VAT obligations on private hire services, Uber UK\u2019s leadership has suggested that <em>some drivers (especially in London)<\/em> might actually <em>benefit financially from VAT registration<\/em> \u2014 not just because they may have to register at higher incomes, but in some cases because it allows them to reclaim tax on business-related costs. (<a title=\"Uber UK General Manager says some drivers may be \u2018better off\u2019 registering for VAT after Budget change\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/p>\n<hr \/>\n<p>Here\u2019s a **detailed look at what <strong>Uber UK<\/strong> has said about how recent UK <strong>Budget changes on VAT (value-added tax)<\/strong> could affect some of its drivers \u2014 including <strong>case examples and comments from Uber\u2019s leadership<\/strong> on the issue: (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"1_What_Changed_After_the_Autumn_Budget\"><\/span><strong>1. What Changed After the Autumn Budget<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the <strong>Autumn Budget 2025<\/strong>, the Chancellor confirmed changes to how <strong>VAT applies to private hire journeys<\/strong> (like Uber trips). Most importantly:<\/p>\n<ul>\n<li>The government ruled that private hire vehicle operators will no longer use the <strong>Tour Operators\u2019 Margin Scheme (TOMS)<\/strong> to calculate VAT on ride fares \u2014 a scheme that previously meant VAT was charged only on a small margin rather than the full fare. (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<li>This means <strong>VAT at the standard 20% rate applies to full fares in London<\/strong> where Uber must act as the principal supplier under Transport for London rules. (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<\/ul>\n<p>Elsewhere in the UK, Uber has <strong>changed contractual terms<\/strong> so that the platform acts as an <em>agent<\/em> rather than a principal \u2014 meaning <strong>drivers contract directly with passengers<\/strong> and Uber charges VAT only on its commission (not the whole fare). (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"2_Case_London_Drivers_VAT_Registration\"><\/span><strong>2. Case: London Drivers &amp; VAT Registration<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Situation\"><\/span><strong>Situation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In <strong>London<\/strong>, private-hire platforms like Uber still have to treat themselves as the <strong>supplier of the full fare<\/strong> \u2014 so fares now include <strong>20% VAT<\/strong>. (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Uber_UKs_View_Andrew_Brem\"><\/span><strong>Uber UK\u2019s View (Andrew Brem)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Uber UK\u2019s Regional General Manager, <strong>Andrew Brem<\/strong>, has publicly commented on how this affects drivers:<\/p>\n<ul>\n<li>He explained that because fares in London are now <strong>exclusive of VAT<\/strong>, <strong>drivers who register for VAT<\/strong> will actually <strong>receive 20% VAT from Uber <em>on top<\/em> of their agreed trip payments.<\/strong> (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<li>By contrast, drivers who are <em>not<\/em> VAT-registered will only receive the base fare without the VAT addition. (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<li>Bres stressed that this means <strong>some drivers could be <em>better off<\/em> financially by registering for VAT<\/strong>, especially if they can use the <strong>Flat Rate Scheme<\/strong> which simplifies tax compliance and can allow some VAT costs to be strategically managed. (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<\/ul>\n<p><strong>Example:<\/strong> A driver in London earning above the VAT threshold (currently \u00a390,000) who registers for VAT could legally charge and retain input VAT on fuel or vehicle expenses \u2014 potentially boosting income compared with simply taking base fares and losing VAT on expenses. (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"3_Comments_from_Uber_UK_Leadership\"><\/span><strong>3. Comments from Uber UK Leadership<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Andrew_Brem_on_Budget_Changes\"><\/span><strong>Andrew Brem on Budget Changes<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In the interview covered by industry reporting:<\/p>\n<blockquote><p><em>\u201cWe recognise the addition of VAT is a change for London drivers and they might want to take tax advice on the implications for them. It will depend on individual circumstances but many drivers will now likely be better off if they register for VAT and, potentially, access the Flat Rate Scheme.\u201d<\/em> (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/p><\/blockquote>\n<p>He further warned that:<\/p>\n<blockquote><p><em>\u201c\u2026a VAT hike means higher prices for passengers in the capital, which likely means less work for drivers.\u201d<\/em> (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/p><\/blockquote>\n<p>This shows that while <strong>VAT registration may benefit drivers who earn enough or manage expenses effectively<\/strong>, there\u2019s also recognition that <strong>higher overall prices could affect trip demand<\/strong> \u2014 which in turn affects earnings. (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"4_Practical_Considerations_for_Drivers\"><\/span><strong>4. Practical Considerations for Drivers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"When_VAT_Helps\"><\/span><strong>When VAT Helps<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Drivers <em>may benefit<\/em> from registering for VAT when:<\/p>\n<ul>\n<li>Their income (from multiple sources including ride-hailing) exceeds the VAT threshold.<\/li>\n<li>They want to reclaim VAT on business expenses like fuel and repairs.<\/li>\n<li>They use the <strong>Flat Rate VAT scheme<\/strong>, which can allow simplified reporting and sometimes a lower effective rate. (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_It_Requires\"><\/span><strong>What It Requires<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>VAT registration brings <strong>administrative duties<\/strong> \u2014 filing regular returns and keeping records.<\/li>\n<li>It\u2019s not automatically the best choice for every driver, especially those with <em>lower turnover or minimal reclaimable costs<\/em>. (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<li>Uber has even <strong>partnered with accounting firms<\/strong> to help drivers understand their options. (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<\/ul>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"5_Wider_Industry_Context_Reactions\"><\/span><strong>5. Wider Industry Context &amp; Reactions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Other industry voices and reporting also highlight how this VAT shift has sparked broader debate:<\/p>\n<ul>\n<li>Drivers\u2019 organizations and local taxi associations have critiqued the move, suggesting it could lead to higher costs for passengers and altered work patterns for drivers. (<a title=\"Chancellor Reeves applies VAT expansion to all private hire ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/phv-vat-confirmed-chancellor-reeves-applies-vat-expansion-to-all-private-hire-trips-in-today-s-autu?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<li>Some independent accountants note that the removal of TOMS and the need to charge 20% VAT fundamentally changes how ride-hailing operators and drivers manage tax. (<a title=\"UK Budget: VAT on private ride-sharing operators 2nd Jan ...\" href=\"https:\/\/www.vatcalc.com\/uk\/uk-budget-vat-on-private-ride-sharing-platforms-1st-jan-2026\/?utm_source=chatgpt.com\">vatcalc.com<\/a>)<\/li>\n<li>On online discussion boards, some drivers mention concerns about how VAT changes impact pricing and ride demand, though experiences vary widely. (<a title=\"hey drivers of the UK, please read these questions!!\" href=\"https:\/\/www.reddit.com\/r\/uber\/comments\/1pf073h\/hey_drivers_of_the_uk_please_read_these_questions\/?utm_source=chatgpt.com\">Reddit<\/a>)<\/li>\n<\/ul>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Summary_Key_Takeaways\"><\/span><strong>Summary: Key Takeaways<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Why VAT Matters Now<\/strong><\/p>\n<ul>\n<li>New UK Budget rules ended the use of a reduced VAT margin scheme for most private hire trips from January 2026. (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<li>In <strong>London<\/strong>, complete 20% VAT applies to full fares because Uber must act as principal; in other regions the agency model aims to limit VAT to commission. (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<\/ul>\n<p><strong>What Uber UK Says<\/strong><\/p>\n<ul>\n<li>Uber UK leadership acknowledges the change and suggests <strong>some drivers <em>may benefit<\/em> from registering for VAT<\/strong>, especially if they leverage available schemes and professional advice. (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<li>The company also warns that VAT will likely increase prices for passengers and could reduce trip demand. (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<\/ul>\n<p><strong>Reality for Drivers<\/strong><\/p>\n<ul>\n<li>VAT registration can mean extra revenue on top of base fares and reclaimable VAT on costs \u2014 <em>but<\/em> also brings extra reporting duties. (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<li>Whether it\u2019s worth it depends on individual incomes, expenses, and how much drivers can benefit from schemes like the VAT Flat Rate Scheme. (<a title=\"Uber UK General Manager says some drivers may be 'better ...\" href=\"https:\/\/www.taxi-point.co.uk\/post\/uber-uk-general-manager-says-some-drivers-may-be-better-off-registering-for-vat-after-budget-chang?utm_source=chatgpt.com\">TaxiPoint Taxi News<\/a>)<\/li>\n<\/ul>\n<hr \/>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; What Happened \u2014 VAT Changes After the Budget In the most recent UK Autumn Budget, the government confirmed that full-rate VAT (20 %) will&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,6],"tags":[],"class_list":["post-991567","post","type-post","status-publish","format-standard","hentry","category-gb-news","category-uk-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Uber UK says some drivers may benefit from VAT registration post-budget - UK News &amp; 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