Uber has announced that it will pay 615 million pounds (about 715 million euros) to the British tax authorities in respect of VAT arrears. This payment is linked to a court decision which had established the existence of a contractual relationship between the platform and its drivers.
In December 2021, the High Court of London had indeed considered that the vehicle platforms which operate in the British capital were not, as argued by Uber, mere “agents”, but had a direct contractual relationship. with customers. The decision came after a judgment of the British Supreme Court which had, in February 2021, considered that the drivers officiating for the reservation platforms were indeed salaried workers and not self-employed.
The High Court ruling had the effect of forcing ride-hailing apps to incorporate VAT into their rates. The UK tax authorities then claimed Uber back value added tax.
An agreement between the two parties
On the sidelines of its third quarter results, published on Tuesday, Uber indicated that an agreement had been reached between the two parties on Monday, which provides for the payment of 615 million pounds to the British tax authorities, by the end of the year. . The group clarified that this charge would not have “significant impact” on its accounts “because we have sufficient reserves” related to this file, according to a press release.
After the change in the status of its drivers, Uber announced, in May 2021, an agreement in May with the British union GMB to represent its 70,000 drivers in the United Kingdom. Then the company had launched, in September of the same year, the creation of a retirement plan to which it contributes up to 3% of the earnings of the drivers, and had invited the rival platforms to participate.