Taxis: VAT

(asked on 7th July 2025) - View Source

Question to the HM Treasury:

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 Portrait
James Murray
Exchequer Secretary (HM Treasury)
This question was answered on 14th July 2025

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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