HMRC has opened an investigation into Uber, after allegations were made that the taxi-hailing app owes more than £1bn in unpaid UK tax.
Uber, which has over 60,000 drivers in the UK, does not pay VAT on fares, as it claims to be just a platform between its self-employed drivers and their passengers. Uber defines each driver as an individual business and makes them pay commission on booking fees to a Netherlands-based subsidiary, therefore avoiding paying any VAT to the UK government.
In November 2017, Uber failed to overturn an Employment Tribunal, which granted its drivers rights to holiday pay, sick pay and the national minimum wages and is currently appealing that decision.
