Two major British minicab firms, Liverpool’s Delta Taxis and Cardiff-based Veezu, are seeking £500,000 in crowdfunding to support their ongoing legal fight against Uber. The dispute, set to be heard by the Supreme Court in July, could have significant financial implications for private-hire operators across the UK.
At the heart of the case is whether minicab companies outside London should be required to charge VAT on fares. If the court rules in favor of Uber, the change could add at least 20% to the cost of journeys, affecting both operators and passengers.
Uber, which began adding VAT to its fares in London in 2021 following a legal ruling, argues that the tax should be applied uniformly nationwide. However, Delta and Veezu warn that such a move could devastate smaller taxi businesses, push up travel costs for passengers, and force thousands of self-employed drivers out of work.
According to Veezu’s data, 43% of minicab journeys involve essential trips, such as medical appointments, commuting to work, and school runs. The company fears that a VAT requirement would make these services unaffordable for many vulnerable passengers.
Paul McLaughlin of Delta Taxis described the legal fight as a “David v Goliath moment,” while Veezu’s chief legal officer, Nia Cooper, cautioned that imposing VAT outside London could price out customers who rely on private-hire services for daily transport needs.
In response, an Uber spokesperson defended the push for a nationwide policy, stating, “There should be consistency throughout the UK to ensure all operators are required to have the same model.”
The Supreme Court’s ruling will not only impact local taxi firms but could reshape the entire private-hire industry, setting a precedent for how operators are taxed across the country.
