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Taxis: VAT

Asked by Gareth BaconConservativeTreasuryTabled Answered 14 July 2025UIN 65386

The question

To ask the Chancellor of the Exchequer, what her Department's planned timetable is for publishing its response to the consultation entitled VAT Treatment of Private Hire Vehicles, which closed on 8 August 2024.

Answered by James Murray

Private hire vehicle services provided by VAT-registered businesses are, and always have been, subject to VAT. The Government continues to take the issue of VAT treatment of private hire vehicle services seriously and recognises the importance of clarity to the sector. It is right, however, that decisions on tax policy are taken at fiscal events in the context of overall public finances. The Government will therefore publish a response to the consultation soon.

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