Uber loses UK Supreme Court appeal over tax on rival apps

Uber's rival taxi operators in England and Wales will not face a 20% VAT charge on their profit margins outside of London after the ride-hailing firm lost its appeal on Tuesday against a previous ruling. (Shutterstock/File)
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Updated 29 July 2025
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Uber loses UK Supreme Court appeal over tax on rival apps

  • Uber sought to have the same terms applied to rival operators and the High Court ruled in its favor last year
  • The ruling applied to rides in England and Wales outside London

LONDON: Uber’s rival taxi operators in England and Wales will not face a 20 percent VAT charge on their profit margins outside of London after the ride-hailing firm lost its appeal on Tuesday against a previous ruling.

Uber had sought a declaration that rival private-hire taxi operators enter into a contract with passengers, meaning operators must charge 20 percent value added tax (VAT) outside London as Uber is required to do.

It brought the case after a 2021 Supreme Court ruling that Uber drivers were workers, making them eligible for the minimum wage and holiday pay, and making Uber subject to VAT for rides.

Uber sought to have the same terms applied to rival operators and the High Court ruled in its favor last year. The ruling applied to rides in England and Wales outside London, which has a different regulatory regime.

However, that ruling was reversed by the Court of Appeal in July 2024 following a challenge by private hire operators Delta Taxis and platform Veezu.

Uber then brought an appeal to the Supreme Court, which on Tuesday unanimously dismissed the appeal, ruling that operators are not required to enter into a contract with passengers.

An Uber spokesperson said the ruling “confirms that different contractual protections apply for people booking trips in London compared to the rest of England and Wales,” but has “no impact on Uber’s application of VAT.”

Delta Taxis’ lawyer Layla Barke Jones, from Aaron & Partners, said a victory for Uber would have badly affected many private hire operators, adding: “A crisis has been averted.”

In a separate case, Estonian ride-hailing and food delivery startup Bolt this year defeated an appeal by Britain’s tax authority HMRC on what it has to charge VAT at 20 percent.

HMRC has since been granted permission to challenge the ruling that Bolt is only liable for VAT on its margin, rather than the full cost of the trip, at the Court of Appeal.

Kimberly Hurd, Bolt’s senior general manager for the UK, welcomed the Supreme Court’s decision on Uber’s appeal, but said a new regulatory framework was needed so that rules were consistent across the UK.


Myanmar, Afghan hopeful scholars mourn UK study visa ban

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Myanmar, Afghan hopeful scholars mourn UK study visa ban

  • Myanmar, Afghanistan, Sudan and Cameroon citizens will be barred from obtaining university visas
  • Britain’s travel block is “really painful” for Afghan women hoping to escape to an education abroad, said one female

YANGON, Myanmar: Aspiring students are lamenting Britain’s ban on education visas for their war-weary countries — dashing dreams of bettering themselves and their home nations.
Myanmar, Afghanistan, Sudan and Cameroon citizens will be barred from obtaining university visas, London announced this week, saying asylum applications by visiting students had “rocketed” nearly 500 percent from 2021 to 2025.
“It’s like the country is punishing the weak, the most vulnerable people,” said one woman from Myanmar.
She was preparing for a scholarship interview for a master’s in climate change finance when her plans were upended by Downing Street’s decree on Wednesday.
“I could not focus the whole morning,” the 28-year-old told AFP from Yangon, speaking on condition of anonymity for security reasons in a country riven by civil war since a 2021 military coup.
“I can’t picture my future.”
Like in much of the developed world, immigration has become a divisive issue in Britain.
Efforts to beat back arrivals mirror the sweeping travel bans issued by US President Donald Trump which have shut out citizens of Myanmar, Sudan and Afghanistan.
Since the chaotic military withdrawal of Britain, the United States and other NATO nations in 2021, Afghanistan has been ruled by a resurgent Taliban government which has banned women over age 12 from attending school.
Britain’s travel block is “really painful” for Afghan women hoping to escape to an education abroad, said one female child social worker in Ghazni province, who asked to remain anonymous for security reasons.
She has now canceled her plans to study for a master’s in both the US and the UK.
“Now I am trying to be hopeful, but I think it would also be a mistake,” said the 27-year-old.
In the summer of 2024, Arefa Mohammadi fled to neighboring Pakistan, living in limbo as she applied to universities.
She got an offer to study public health in England but now cannot accept it.
“It was truly shocking for me,” said the 24-year-old.
“This situation put me in a place where I haven’t any goals, because all my goals and all my futures are unpredictable.”

- ‘Cruel and short-sighted’ -
In Kabul, a 39-year-old man faces similar heartbreak.
He was accepted to study specialist subjects related to water management at three universities in England and Scotland.
“When I was a child I witnessed several challenges like flash floods, water scarcity, environmental neglect, inefficient irrigation systems,” he said, asking to remain anonymous for security reasons. “To address these challenges I made my application.”
“I hoped to acquire modern knowledge. It’s impossible to acquire in Afghanistan,” he added.
Some 33 million people in the country face severe water shortages, aid agencies say, a result of compounding multi-year droughts, climate change and infrastructure battered by decades of war.
Britain’s Labour government made the decision to curb visas as the right-wing Reform UK party surges in opinion polls with its hard-line stance against immigration.
The UK Home Office said almost 135,000 asylum seekers had entered the country through legal routes since 2021.
Activist organization Burma Campaign UK called the visa ban “exceptionally cruel and shortsighted.”
“The opportunity to come to the UK to study is life-changing for the individual student but also an investment in the future of Myanmar,” said program director Zoya Phan in a statement.
One exiled Myanmar journalist has been living over the border in Thailand after escaping the military rule which has clamped down on press freedoms.
“When the military coup happened I was just 22, so I had a lot of dreams,” she said. “But over the past five years there have been a lot of struggles — I couldn’t complete my dreams.”
Every year since the junta takeover she applied for further education to buoy her spirits.
But she received an email Thursday morning canceling her place to study for a master’s at a London university.
“Everything is gone,” she said. “My UK dream is all disappeared.”