HMRC is investigating Uber over allegations the ride-hailing company owes £1bn in unpaid VAT.
Uber argues that it is exempt the tax because it merely acts a digital intermediary between its 60,000 self-employed drivers and passengers. And, like black-cab drivers, Uber says it is not liable for VAT because its drivers earn under the £85,000 threshold.
However, if HMRC rules that Uber is a transportation company and should be paying VAT it would face the biggest tax big ever levied on a digital giant in the UK.
Tax barrister Jolyon Maugham is due to file legal action against HMRC for what he believes is its mishandling of Uber’s VAT case.