Veezu Celebrates Landmark Court of Appeal Victory in Uber vs Sefton Borough Council Case

Veezu, the UK’s largest and fastest-growing private hire taxi technology business, is pleased to announce a significant legal triumph following the Court of Appeal's ruling in the Uber vs Sefton Borough Council Case on July 15.

Veezu is proud to have been part of the team that successfully reversed the prior decision, which would have negatively affected countless lives and imposed significant administrative challenges on operators. The appeal outcome secured is a huge win for the entire private hire industry and its drivers.

This pivotal decision overturned the previous declaration by the High Court last year, which had asserted that private hire vehicle (PHV) operators enter into a contract with passengers, making them liable for VAT at 20% for all operators outside London. Representing 38 smaller private-hire operators across the UK, Veezu spearheaded the intervention in the proceedings.

The case centred around a new interpretation of a licensing statute dating back to 1976, which suggested that all private hire vehicle (PHV) fares should be subject to VAT at 20%, a move that could have drastically increased private hire fares. Historically, Licensing Authorities, operators, and regulators interpreted these lines without issue for nearly five decades. In July 2023, the High Court ruled that private hire operators must form contracts with passengers. This decision raised concerns among private hire operators about the potential for passengers to incur VAT on private hire journeys which could have led to significant fare increases. The Court of Appeal's decision this month supports the traditional interpretation representing a landmark victory.

Nia Cooper, Chief Legal Officer at Veezu, said: "We are grateful to the Court of Appeal for hearing the case and finding in our favour. The Private Hire industry is integral to the transport network and provides an income for self-employed driver-partners and local private hire operators. It is often the only form of transport accessible to local communities on a consistent and reliable basis. The original ruling had the potential to drive up fares, reduce the availability of services, and put driver-partners and operators out of business. The ruling by the Court of Appeal removes the burden on Local Licensing Authorities to invest in unnecessary policy changes and continue with the well-established processes already in place.”

Despite the unanimous decision of the Court of Appeal, Uber has indicated its intention to appeal to the Supreme Court, keeping the VAT issue alive.

The PHV industry has until the 8th of August to submit its views on how VAT is treated across the sector. Veezu encourages all stakeholders to seize this opportunity to voice their opinions.