Ride-hailing giant Uber has legally avoided paying a significant portion of the new tax in the UK after restructuring contracts with its drivers outside London.
According to The Guardian, the move was aimed at reducing the VAT (sales tax) the UK government had expected to collect under a new policy dubbed the “taxi tax.”
The report added that the Treasury is now unlikely to collect the full £700 million a year it had projected from the measure.
The contractual change allows Uber to prevent fares from rising by 20% outside London.
Following court…
