Uber might introduce 20% VAT to all its journeys, following yesterday’s High Court judgement.
The Supreme Court also ruled that the app-based taxi company had to accept drivers as contractors in February.
At the ruling, Lord Justice Leggatt stated that the company would need to assume a contractual responsibility to customers and not passengers having to sign a driver’s contract.
Uber could be required to add VAT for this reason.
Uber London and Free Now, a hire company that was not subject to a specific contract obligation, brought suit in High Court.
Uber might introduce 20 percent VAT on all journeys, following yesterday’s High Court decision
Yesterday’s Supreme Court decision was upheld.
Both Lord Justice Males (and Mr Justice Fraser) stated that Uber might need to modify its operating model.
They also stated that the app users, especially late at night, are ‘vulnerable’ and that ‘the consequences of drivers failing to show up could be severe’.
Recent concerns have been expressed about the effects of Uber’s increased waiting time and night tube service on women’s safety following the death of Sabina Everard and Sarah Everard.
Uber recently announced that its London prices would rise by 10 percent and Stansted airport travels will go up 25 percent in order to decrease cancellations.
According to the firm, there has been a 20% increase in customer demand since summer coronavirus restrictions were removed.
Uber spokesmen stated that the High Court ruling would have an impact on all London private-hire operators and the company should follow the decision ‘in its entirety’.
These drivers also suggested that companies need to ensure they are treated fairly by all other employees.
TfL spokesperson said that it “notes” the judgment and that operators will have to “take steps to comply”, including considering if any changes are necessary to their work methods.
Recent concerns have been expressed about the effects of Uber’s increased waiting time and decreased night tube service on women’s safety following the death of Sabina Everard and Sarah Everard. (stock photo)