PHTM - Private Hire & Taxi Monthly Newspaper’s Post

The Court of Appeal issued its decision in DELTA Merseyside Ltd & Veezu Holdings Ltd v Uber Britannia Ltd (“DELTA”) on 15 July 2024 and overturned the previous ruling in the High Court. This presents a problem for HM Treasury and HMRC. At face value, the VAT treatment of income earned by a private hire operator (“PHO”) now relies on a patchwork of UK licensing regulations, rather than VAT legislation. There are many instances in primary VAT legislation which rely on third party statute to establish the boundaries of VAT exemptions or zero-rating. By contrast, there is no precedent for third party statute to dictate the amount of VAT payable in different parts of the UK, based on similar or identical business models. We have an untenable position in which the obligation to pay VAT depends on a mixed bag of licensing regulations which are not designed to deal with VAT. In addition, the VAT position is being challenged in the Courts by Bolt, which has so far succeeded in its argument that VAT is only due on the margin by applying the principles of the tour operators margin scheme (TOMS). Finally, we await the outcome of the Government consultation on the private hire sector, which was based on the outcome of a High Court decision, which has been overturned by the Court of Appeal. Please read the article drafted by Naomi Quant and me for further thoughts on the issue. #vat #privatehire #mha https://lnkd.in/enczVq-E

In my previous post, I illustrated "policy paralysis" using the situation of autorickshaw fares in Bengaluru. In this post, I will illustrate the complete breakdown of "rule of law" again using the case of autorickshaw fares in #Bengaluru. Karnataka Transport Department issued a Notification dated 25.11.2022 bearing No.TD 241 TDO 2022 applicable to aggregators. So, what was this notification about ? It basically capped the autorickshaw fares chargeable by the aggregators to approved metered fare + 5% service charges. Uber and Ola promptly filed writ petitions in the Karnataka High Court seeking quashing of this notification. Following a series of hearings, the Karnataka High Court dismissed the writ petitions on 27th May 2024 (see relevant judgement extract below) and confirmed the validity of the fare Notification: *** 25.1. Given my finding concerning all the points above, no grounds have been made out; the writ petitions are dismissed. 25.2. It is, however, made clear that the aggregators would be entitled to collect 5% service charges as per the impugned notification now upheld, over and above the fare fixed.  **** Any land where the "rule of law" is reasonably operational, citizens would naturally expect compliance of this judgement on the fare notification. But unfortunately not so in Karnataka. Why ? - The Transport Department has failed (or doesn't bother) to implement its own notification despite the Court's backing; - Auto drivers do not operate fare meters (a key condition of their permits); - Aggregators do not follow fare notification (doesn't bother too much about the law or complying with the judgement); and - Citizens too are largely unaware of this judgement and blithely pay fancy fares arbitrarily fixed by the aggregators. Perhaps this apathy might have made one of the counsel for the aggregator to argue thus (see extract from judgement)! **** 17.7. Invoking the principles of Laissez-faire and freedom of economy, he submits that a service provider like Uber can levy any charge it deems fit on the passenger or the permit holder, which cannot form part of the fare nor can it be controlled or regulated by authorities. **** Summing up, aggregators in Bengaluru operate in an ecosystem that is well defined by "policy paralysis"and breakdown of "rule of law". No wonder only investors with deep financial pockets thrive in this ecosystem as they can afford to efficiently grease the wheels of the Transport Department inefficiency and also has the capability to keep the policy pot perpetually boiling in a series of Court cases. #aggregators #urbantransport #law

Taxi Industry Shifts Gears: Legislative Changes Target Uber and Bolt, by Andreea Gudin Revamping Regulations: Taxi Associations Secure Modifications Affecting Uber and Bolt Negotiation Breakthrough: Transporter Associations and Minister Find Common Ground After weeks of tension, transporter associations engaged in negotiations with the Transport Minister to resolve conflicts. While reaching an understanding to quell the two-week-old dispute, they pressed the government to combat piracy in transportation and halt the expansion of ‘ride-sharing’ into unauthorised domains like freight transport, courier services, and international passenger transport, all currently deemed illegal. Expanding Demands: Associations Seek Equality in Taxation for Ride-Sharing Firms Seizing the opportunity, the sector-specific representative associations urged changes to the alternative transport law. They demanded that ride-sharing companies pay taxes and duties equivalent to all other businesses in Romania and be restricted from obtaining an unlimited number of compliant permits for transportation. Uber and Bolt, forming an association, requested equal treatment, though not meeting all criteria outlined in social dialogue laws. Transport Turbulence: Legal Battle Since 2014 Authorised transporters in Romania have been battling alternative transport since 2014, mirroring trends in other countries. In 2019, an alternative transport law was introduced, creating a parallel structure to traditional taxi laws. After attaining legal compliance, ride-sharing companies expanded into international passenger transport, freight, and courier services, areas not covered by the law. Associations Seize Opportunity: Push for Law Revision.....www.nineoclock.ro https://lnkd.in/dBPCSkqF

⚖️ CJEU will be addressing several fascinating issues in the future! This is not only from Poland, where a question about the classification of ICS/Export was raised [https://lnkd.in/dCZ99DDV], but also from Sweden, where a practical question on vouchers appeared🎟️ (please see also great summary on vouchers' issue presented below by Thomas van Ditzhuijsen) #TaxNews #VAT #podatkiwbiznesie

Tax Tip for Rideshare Drivers! 🚗💸 Are you cruising the streets for Uber, Doordash, or Grab? Remember to track your expenses for maximum tax deductions! Deductible expenses can include mileage, gas, phone and data plans, and even advertising costs. Consult with a tax professional to ensure you're claiming all the deductions you're entitled to. Drive smart, save big! 🌟📈 Let me help you handle this! 📩 Messenger: https://buff.ly/44e1dHX 📞 Whatsapp: +65 9136 6723 . . . . #AlcidAccountingSolutions #RideshareTaxTips #TaxDeductions #MaximizeSavings #ALCIDTaxAdvice

🚨 **Critical Update for Irish Uber Drivers**🚨 I just read an insightful article by Killian Woods highlighting a major issue for Uber drivers in Ireland. Many drivers could be at risk of losing their licenses due to unpaid VAT owed to Revenue. If you’re an Uber driver, it’s essential to know that you’re liable for VAT on the payments you’ve made to Uber. Failing to clear any outstanding VAT could prevent you from renewing your tax clearance certificate, which is crucial for renewing your taxi license. This is a significant development as it could potentially force drivers out of the industry with a major impact to the public. #Uber #IrishTaxiDrivers #VATCompliance #TaxClearance

𝗛𝗔𝗩𝗘 𝗔 𝗗𝗢𝗨𝗕𝗟𝗘 𝗖𝗔𝗕 𝗣𝗜𝗖𝗞𝗨𝗣? If you heard that HMRC were now treating double cab pickups with payloads of one tonne or more as cars and thought …..crap what do I do? Well, you don’t need to do anything as HMRC have withdrawn this change and double cab pickups are still considered commercial. 🥳 Check out what they HMRC had to say below - 'On Monday 12 February 2024, following a 2020 Court of Appeal judgment, the guidance had confirmed that from 1 July 2024 double cab pickup trucks with a payload of one tonne or more would be treated as cars rather than goods vehicles for both capital allowances and benefit in kind purposes.' You can read the full update here - https://lnkd.in/ePD3vSwK 📞 01452 260950 📧 [email protected] Drop us a follow to keep up to date with all the latest HMRC information or to find out about our services, please get in touch via email or phone! 📲 #ilexaccountancy #gloucestershire #gloucesteraccountant #glosbiz #accountantgloucester #quickbooks #accountancy #xero #constructionindustryscheme #gloucesterbusiness

⛽ HMRC advisory fuel rates for company car users from 1 June 2024 The advisory fuel rates that apply from 1 June 2024 have been amended by HMRC. The previous rates, effective from March 2024, can be used for up to one month from the date the new rates apply. The rates only apply in the following circumstances: ⛽ reimburse employees for business travel in their company cars; or ⛽ require employees to repay the cost of fuel used for private travel. These rates cannot be used in any other circumstances. When employees are reimbursed for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A national Insurance to pay. HMRC reviews rates quarterly on 1 March, 1 June, 1 September & 1 December #fuelrates #fuelrates2024 #companycar #AdvisoryFuelRates #businesstravel #AMOF