The UK’s tax authority has won a major Court of Appeal ruling against ride-hailing company Bolt in a VAT dispute worth around £190 million — and the decision could have even bigger implications for Uber, which has a similar case worth more than £1.4 billion waiting in the wings.
The Court of Appeal handed down its judgment on 12 June 2026, overturning two earlier tribunal decisions that had found in Bolt’s favour. At the centre of the case was whether Bolt could use the Tour Operators’ Margin Scheme (TOMS) — a VAT arrangement originally designed for travel agents and holiday companies — to reduce its tax bill by paying VAT only on its profit margin rather than on the full fare charged to passengers.
Lady Justice Falk rejected that argument. The court found that on-demand minicab services are fundamentally different from the services offered by travel agents and tour operators, and that there was no legal basis for applying TOMS to Bolt’s PHV operations. Since August 2022, Bolt has operated as the principal in its transactions — contracting separately with passengers and drivers — meaning that under standard VAT rules, it should be charging VAT on the full fare amount.
HMRC said it welcomed the judgment, which it said confirmed its position on the VAT treatment of private hire vehicle operator services.
Bolt said it was disappointed and would consider all options available, suggesting it may seek to appeal further.
The ruling matters hugely for the broader ride-hailing sector. Uber has a closely related case pending, which has been on hold while Bolt’s case worked its way through the courts. A London tribunal previously recorded that Uber had deposited disputed tax sums of over £1.446 billion. Now that the Bolt case has been decided, Uber’s case is expected to move forward — and the Court of Appeal’s reasoning is likely to weigh heavily in that outcome.
For drivers on these platforms, the VAT treatment of fares is technically separate from driver pay, but any significant increase in the cost of operating these businesses tends to find its way into the system eventually — whether through fare changes, commission adjustments, or other terms. One to keep an eye on.
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