When does VAT on private hire fares change?

What changes

Private hire operators above a turnover threshold become liable for VAT on the full fare; £50 million is the lead option, subject to consultation.

Who it affects

Private hire fleet operators.

Source

HM Treasury: Budget 2026, overview of tax legislation and rates, 28 October 2026. Expected: officially stated, but not yet in force or subject to a decision still to come.

In THRIVE's reporting

• TfL proposes zero-emission rule for newly licensed London private hire vehicles from July 2028

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