Budget 2026: John Healey pledges to introduce sweeping VAT changes for taxi firms

BREAKING Tommy Robinson found guilty of harassing two journalists 1793200740.364 John Healey pledges to introduce sweeping VAT changes for taxi firms Labour will launch a public consultation shortly to confirm key details Sign up to the Cars Newsletter I agree to receive updates and information about my account, the GB News Community, and related products and services from GB News. Email address Sign up By signing up you agree to the Terms and Conditions and Privacy Policy and Community Rules.

Thank you for signing up! See the latest from GB News here . Choose GB News on Google - add us as a preferred source Choose GB News Support GB News Champion free speech and independent journalism while unlocking exclusive benefits. Support us Chancellor John Healey said he would take action to ensure all taxi firms are paying a fair level of VAT. Speaking in Parliament, John Healey announced changes to ensure HM Revenue and Customs gets more money to help collect more tax.

This would involve reforming how self-assessed income tax is collected, resulting in "smaller, more regular payments" rather than large bills. Mr Healey told MPs that VAT rule changes would be introduced for larger taxi companies. TRENDING Stories Videos Your Say He said he would "resolve the question of VAT for larger taxi companies, ensuring they play by the same rules no matter where they're located, while still protecting smaller, local firms".

Budget documents state that the Government will deem the larger operators with annual fare turnover above a certain threshold liable for VAT. This will mean operators earning above the threshold need to pay 20 per cent VAT on the full value of their fares from January 2, 2028. Labour will launch a public consultation shortly to confirm the precise level of the threshold. Chancellor John Healey said the Government would 'resolve the question of VAT for larger taxi companies' | GETTY At present, £50million in annual turnover is the leading option, although this could change based on feedback.

The consultation will also be used to support final policy design and implementation. The Office for Budget Responsibility's economic and fiscal outlook document states that receipts have been revised down by £1.2 billion in 2026-27 compared to March. It states that one-third of this is due to reduced receipts from some private hire vehicle operators changing their business models. LATEST DEVELOPMENTS Labour approves new driving law changes impacting petrol, diesel and electric cars next year UK dri vers can save £3,750 on new electric cars from Mini, Ford, BMW and more - full list Driving law changes confirmed by Labour to save British motorists £300 a year John Healey delivered his first Budget as Chancellor this afternoon | REUTERS The OBR suggested that this was true for businesses outside of London since last year's Budget to charge VAT on private hire vehicle operators.

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