- The previous government launched a consultation on the VAT treatment of private hire vehicles (PHVs).
- The consultation was seeking to understand the potential tax impacts of recent high court judgments on the PHV sector.
- The consultation invited views on government interventions that could mitigate adverse effects of these judgments (although one of these judgments has since been overturned by the Court of Appeal, and the Court of Appeal judgment upheld by the Supreme Court).
- At Budget 2025, the government announced that suppliers of private hire vehicle and taxi services will be excluded from the scope of the Tour Operators’ Margin Scheme (TOMS).
- Timing: the consultation closed on 8 August 2024 and the government issued the response on 26 November 2025. The amendment to TOMS will take effect from 2 January 2026.
Resources (click to open)
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