The UK’s new ‘taxi tax’ imposes a 20% VAT on minicab fares, but Uber has restructured driver contracts from January 2026 to act as an agent, shifting VAT responsibility to drivers. Most drivers earn below £90 k and therefore do not charge VAT, keeping fares outside London unchanged, while London fares remain subject to VAT.
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Law360 · 4 days ago
A UK court decision allows a travel agency to contest HM Revenue & Customs’ trimming of its VAT credit by approximately £187,000. The ruling spiked the tax authority’s bid for an early end to the case, giving the agency the right to pursue a full challenge. The case highlights the importance of monitoring HMRC adjustments and the potential for judicial review.
FE Week · 17 days ago
The Court of Appeal has ruled in favour of Colchester Institute in a VAT dispute with HMRC, allowing the college to reclaim VAT on pre‑2010 capital projects. The decision could extend to an estimated 20‑30 other colleges and raises uncertainty for charities that may lose VAT discounts. The ruling centres on the Lennartz mechanism, which HMRC had withdrawn in 2010.
Law360 · 23 days ago
A London court ruled that a technical college receiving free courses funded by the UK government must treat the funding as consideration for its taxable supply of services, making it subject to VAT that can be recovered from HMRC. The decision clarifies the tax treatment of government funding for educational services. The ruling was issued on March 27, 2026.
The VAT Team · 24 days ago
The article explains how place of supply rules determine VAT treatment for cross‑border services, outlining B2B and B2C rules, land‑related exceptions, and the importance of identifying place of supply to avoid compliance issues. It also highlights that UK VAT applies if the place of supply is the UK, and that non‑established businesses face a nil registration threshold.
GOV.UK · 25 days ago
The UK government’s Simplified Customs Declaration Process (SCDP) offers a two‑stage electronic declaration method that reduces border controls for authorised traders. Importers must be pre‑authorised, hold an EORI number, and submit a supplementary declaration within ten calendar days of the reporting period’s end, keeping records for four years.
BBC · 26 days ago
Trinity Christian School in Reading closed after 13 years, citing the removal of VAT exemption on private school fees and rising business rates as the main reasons. The UK government introduced VAT on private school fees from 1 January 2025 at the standard 20% rate, expected to raise £1.8 billion a year by 2029/30. The school’s business rates increased to £35,000 from about £5,000, and its application for discretionary relief was denied.
This summary was published on VATfaqs.com on 2 January 2026. It relates to VAT developments in United Kingdom. The original source is The Guardian.
