Private Hire Operators VAT 2022-10-13
2022-10-13
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question arises from the need to understand VAT implications for private hire vehicle operators in light of their role as principal or agent and whether they meet the VAT threshold. The context includes concerns about a court case potentially altering relationships between customers and operators, risking many small operators.
Whether she has had recent discussions with Cabinet colleagues on the potential impact of VAT levels on private hire operators. I welcome my near constituency neighbours to their posts. I hope they will get behind a brilliant public transport scheme that Cambridge craves and the country needs Cambridge to have. There are 16,000 private hire operators across the country and an impending court case could change the complicated relationship between customer and operator. The worry is that if that change comes into effect, as a consequence of the court case, many small operators could be at risk.
I welcome the hon. Member's championing of a great area in the country in the east of England. I am aware of the litigation that he refers to. His Majesty's Revenue and Customs is considering any implications that that may have on VAT payable by private hire vehicle operators. As he will know, the Government keep all taxes under review at all times. I am sure that the Minister responsible for this area, Baroness Vere in the other place, will be happy to meet him.
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Assessment & feedback
The specific plans to deal with the contingency if the court case changes the relationship between customers and operators were not provided.
Response accuracy
Q2
Partial Answer
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Context
The question is prompted by the need to clarify whether a private hire vehicle operator needs to pay VAT, dependent on their role as principal or agent and meeting the VAT threshold. The context includes concerns about an impending court case that could affect the relationship between customers and operators.
Whether she has had recent discussions with Cabinet colleagues on the potential impact of VAT levels on private hire operators. I know the hon. Gentleman is a keen champion for this area, given that he is chair of the all-party parliamentary group on taxis. He will know that the question of whether a private hire vehicle operator needs to pay VAT depends on two factors: whether he is acting as principal or as agent; and whether he meets the VAT threshold.
I know the hon. Gentleman is a keen champion for this area, given that he is chair of the all-party parliamentary group on taxis. He will know that the question of whether a private hire vehicle operator needs to pay VAT depends on two factors: whether he is acting as principal or as agent; and whether he meets the VAT threshold.
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Assessment & feedback
The specific impact of potential changes due to the court case was not addressed.
Response accuracy