Taxis and private hire businesses

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

Taxis and private hire businesses

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
imgtext

This guidance note provides an overview of the VAT treatment of supplies made by taxi and private hire or mini cab businesses.

VAT treatment

The zero rate of VAT that applies to passenger transport in vehicles on journeys that take place wholly within the UK refers to supplies in vehicles that are designed to carry not less than ten passengers and supplies by a universal service provider. Taxi and private hire businesses do not qualify as a universal service provider and in most, if not all cases, the vehicles used are designed to carry less than ten passengers. The general effect is that a taxi or private hire business that is, or should be, registered for VAT, is required to account for VAT at the standard rate on its supplies of passenger transport. For information about the zero rate of VAT that applies to certain supplies of passenger transport, see the Liability - passenger transport guidance note.

Taxi and private hire businesses may also receive additional income from the following sources (this list is not

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+

Popular Articles

Substantial shareholding exemption ― overview

Substantial shareholding exemption ― overviewThe substantial shareholdings exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. No claim is required. Provided

14 Jul 2020 13:44 | Produced by Tolley Read more Read more

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more Read more

VAT registration ― change of VAT registration details

VAT registration ― change of VAT registration detailsVAT registered persons must keep their VAT registration details up to date and notify HMRC of any changes. Failure to notify HMRC by the relevant time could result in a penalty. For guidance regarding penalties for failure to notify please see the

14 Jul 2020 13:57 | Produced by Tolley Read more Read more