"The Chancellor has been warned not to introduce an increase for VAT and dozens of taxi firms are warning Rachel Reeves thousands of jobs could be at risk. The Chancellor has received a letter from 59 national and regional taxi operators slamming the government "taxi tax." There has been reports that Reeves is planning to introduce 20% VAT hike on private hire vehicles at the upcoming Autumn Budget."
"Taxi and private hire companies outside of London do not charge VAT on journeys as they are self-employed contractors, who are warning that hundreds of small to medium sized firms will collapse. The companies are also warning local and the night-time economies are at risk and those who live in rural communities, the elderly, disabled and families will be affected, especially those who live in Wales, the South West and the East of England."
Fifty-nine national and regional taxi operators have written to the Chancellor opposing a proposed 20% VAT increase on private hire vehicles. Many taxi and private hire firms outside London operate with self-employed drivers and do not currently charge VAT. Operators warn that a VAT hike would cause hundreds of small and medium firms to collapse and endanger thousands of jobs. Businesses say local and night-time economies, rural communities, the elderly, disabled people and families would be disproportionately affected. Private hire company Veezu reports over 50% of journeys serve essential purposes and notes around 265,000 licensed drivers across the UK. Operators are calling for a meeting to secure a fair, sustainable outcome and confirmation that PHVs will not face a 20% VAT rate.
Read at London Business News | Londonlovesbusiness.com
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