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The Guardian // Politics

Uber rewrites contracts with drivers to avoid paying UK’s new ‘taxi tax’

Friday 2nd January 2026, 1:08PM

Hailing app will now act as agent rather than supplier outside London, avoiding VAT requirement Uber has swerved paying millions of pounds to the UK exchequer under Rachel Reeves’s new “taxi tax” after the ride-hailing app rewrote contracts with its drivers.The move came as rules announced in November’s budget took effect, which adjusted how VAT is payable on minicab fares and would have resulted in the whole Uber fare becoming subject to the 20% sales tax. Continue reading...

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