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Press watch: Uber faces VAT challenge

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The Financial Times has reported (20 March) that Uber is facing a fresh legal challenge from tax barrister Jolyon Maugham QC over VAT.

The Financial Times has reported (20 March) that Uber is facing a fresh legal challenge from tax barrister Jolyon Maugham QC over VAT. The newspaper reports that Maugham delivered a ‘letter before action’ to the firm’s London headquarters as a precursor to issuing legal proceedings before the High Court in April. The barrister wants Uber to provide him with a VAT receipt for a journey he took to see a client, and he says that Uber can't give him a VAT receipt without accepting it is liable to charge VAT. Maugham said that the employment tribunal in Y Aslam, J Farrar & Others v Uber (Case Nos 2202551/2015) – which found that a group of Uber drivers were employed as ‘workers’ and was making supplies of transport services, rather than not merely acting as a booking agent – means that Uber should be charging VAT on its fares. Maugham is the director of The Good Law Project, which intends to bring strategic legal challenges to help make changes to the law, and which is seeking crowdfunding to cover the bulk of the costs of bringing the case in the High Court.

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