Merseyside’s Delta Taxis has issued an official in-app message to its drivers (shared with DM News) reassuring them that VAT will not be added to Delta fares in January, despite widespread confusion following yesterday’s Budget announcements.

According to the in-app notice seen by DM News, Delta told drivers that media reports suggesting all private hire operators would need to charge VAT from January are “incorrect”, and that the changes confirmed in the Autumn Budget relate specifically to large rideshare platforms, not agency-model operators like Delta.

The Delta message also states that big rideshare companies will now be liable to pay the full VAT on their fares, describing them as “reluctant to do so” until now.

DM News Commentary

This update from Delta will come as a relief to many private hire drivers in Merseyside, especially after a day of confusion caused by conflicting posts online.

The Government’s announcement about changes to the Tour Operators’ Margin Scheme (TOMS) has caused widespread misunderstanding across the PHV industry. Many assumed it meant every operator — large or small — would have to start adding VAT to fares. But as Delta has correctly pointed out, the Supreme Court ruling earlier this year (Uber v Sefton/Delta) confirmed that agency-model operators are not required to act as principal, meaning VAT does not automatically apply to their fares.

The Budget change does not override that ruling.

App-based giants like Uber, Bolt, FREENOW and others are expected to be the primary companies affected — not traditional private hire bases operating under an agency structure.

DM News will continue monitoring updates from HMRC, operators, unions and industry bodies as more clarity emerges.

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