LCDC demands answers from Tfl and City Hall.

Dear Helen, Graham,

As you are aware the recent High Court declared that an operator licensed under the Private Hire Vehicles (London) Act 1998 is required to enter into a contractual obligation with the passenger, as principal. 

This could have implications in regards to VAT obligations 

https://www.gov.uk/guidance/how-vat-applies-to-taxis-and-private-hire-cars-notice-70025

This was highlighted, at the time in numerous media articles. 

https://www.google.co.uk/amp/s/www.dailymail.co.uk/news/article-10282439/amp/UBER-starting-charging-passengers-20-cent-VAT.html

https://www.google.co.uk/amp/s/www.mirror.co.uk/money/uber-prices-could-rise-20-25638376.amp

Though the December declaration referred to legislation outside London, it currently only applies to those operators licensed under the 1998 Act. 

We could have a situation, whereby a London operator charges VAT and an operator licensed under Local Government (Miscellaneous Provisions) Act 1976 does not.

We know from your responses in regards to cross border hirings you consider this lawful, citing case law.

Does this not ring alarm bells? 

We have a scenario, whereby an operator licensed under the 1976 Act, whether those located on the periphery or large nationwide operators can effectively send vehicles to London with an added incentive they are not required to charge VAT! 

Not only would this have a devastating effect on the London Taxi & Private Hire trade. It will have serious implications to public safety, with the lack of (or limited) TfL enforcement powers, not to mention TfL resources! 

Is it not a duty, with the most urgency, that TfL seek or work with others to seek a declaration in regards to the 1976 Act? 

Regards 

Grant Davis

Chairman

LCDC 

Visit our YouTube Channel at www.LCDC.TV

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