Uber Skirts New Taxes, Drivers Unaffected
Update: 2026-01-01
Description
Uber evades new taxes by rewriting driver contracts, shifting to an agency model outside London. This move coincides with Chancellor Rachel Reeves budget change, which imposes taxes on full fares instead of just commission. Drivers wont owe VAT until they reach £90,000 in annual bookings, potentially costing the government millions. Uber argues this keeps fares affordable and matches industry standards, while the Treasury maintains it supports traditional cabbies and funding priorities. In London, Uber rides will fully face the new tax, potentially increasing fares.
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