The High Court has turned down the Good Law Project’s application for a protective costs order in its action against Uber over the company’s liability for VAT. The order was necessary to put a limit on the Project’s exposure to costs, estimated at £1m.
The judge found that a protective costs order could not be obtained in ‘private law proceedings’ and the fact that the black cab trade had contributed to the Good Law Project’s campaign also weighed heavily against the application. The Project is seeking permission to appeal.
‘Without a protective costs application the litigation cannot continue’, the Good Law Project says on its website. ‘We are also urgently exploring an alternative route by which we might ensure HMRC does its job and Uber pays the £1bn in tax and interest we believe it owes’. See bit.ly/2EihmSN.
The Good Law Project, led by Jolyon Maugham QC, initiated legal proceedings in 2017 to challenge Uber’s position that the company does not make taxable supplies of transportation services.
In August 2017, HMRC declined Mr Maugham’s request to exercise its discretion under the VAT Regs to allow his claim for recovery of input tax on a taxi journey taken with Uber, even though Uber drivers do not issue VAT receipts.
The High Court has turned down the Good Law Project’s application for a protective costs order in its action against Uber over the company’s liability for VAT. The order was necessary to put a limit on the Project’s exposure to costs, estimated at £1m.
The judge found that a protective costs order could not be obtained in ‘private law proceedings’ and the fact that the black cab trade had contributed to the Good Law Project’s campaign also weighed heavily against the application. The Project is seeking permission to appeal.
‘Without a protective costs application the litigation cannot continue’, the Good Law Project says on its website. ‘We are also urgently exploring an alternative route by which we might ensure HMRC does its job and Uber pays the £1bn in tax and interest we believe it owes’. See bit.ly/2EihmSN.
The Good Law Project, led by Jolyon Maugham QC, initiated legal proceedings in 2017 to challenge Uber’s position that the company does not make taxable supplies of transportation services.
In August 2017, HMRC declined Mr Maugham’s request to exercise its discretion under the VAT Regs to allow his claim for recovery of input tax on a taxi journey taken with Uber, even though Uber drivers do not issue VAT receipts.
