Do I need to register for VAT as a private hire driver?

The short answer

Most private hire drivers do not need to register for VAT.

You only have to register if your gross turnover passes £90,000 in any rolling 12-month period. Gross turnover means the total fares before any platform commission is taken off. Very few individual drivers reach that level.

You may have heard about a VAT change in 2026. That change was about the platforms, not about you, and it did not alter any driver's VAT position. What matters for your own VAT is who contracts with the passenger, which is covered below.

The VAT registration threshold

For the 2026/27 tax year the VAT registration threshold is £90,000. This has been unchanged since April 2024. You must register if your taxable turnover passes £90,000 in any rolling 12-month period, or if you expect it to pass £90,000 in the next 30 days alone.

The threshold is measured on a rolling basis, not by tax year. It resets every month, not on 5 April. So you check the last 12 months at the end of each month, whatever 12 months those are.

The deregistration threshold is £88,000. If you registered because you passed £90,000 but your turnover later falls below £88,000, you can apply to come off the register.

How to monitor your turnover

Check your platform earnings summaries. Add the gross figure from every platform together. That combined total is what counts towards the threshold, not the amount that lands in your bank account after commission.

What actually changed in 2026

There has been a lot of talk about a 2026 VAT change. It is worth being clear about what changed and what did not.

The VAT rule change itself was about how operators account for VAT. It did not change the VAT position of any individual driver.

The change that does affect drivers is a different thing. From January 2026, Uber moved to an agent model outside London. Before that, Uber outside London acted as the principal and contracted with the passenger. Now, outside London, you contract directly with the passenger yourself.

That is an Uber change, and it only applies outside London. Inside London nothing changed: Uber remains the principal there because Transport for London rules require it. Bolt and FreeNow remain the principal everywhere, in and out of London.

So who contracts with the passenger is what matters for your VAT, and the answer depends on your platform and whether you drive in London. The next section sets that out.

Who contracts with the passenger

For VAT, the question that matters is whether the platform contracts with the passenger as principal, or whether you do. There are really only two situations.

Platforms acting as principal: not your VAT to worry about

Where the platform is the principal, it contracts with the passenger and accounts for VAT on the fare itself. You are not directly liable for that VAT. This covers most drivers, most of the time:

• Uber in London. Transport for London rules require the operator to be the principal, so Uber charges VAT on the full fare. London drivers are not directly liable for it.
• Bolt and FreeNow, everywhere. Both act as principal across the UK, in and out of London.

If you only drive on these platforms in these situations, the VAT on fares is the platform's responsibility, not yours.

Uber outside London: you contract with the passenger

Since January 2026, Uber outside London acts as an agent. That means you contract directly with the passenger, and your fares are your own turnover for VAT. If your gross turnover passes £90,000 in a rolling 12-month period, you may then be liable to register and charge VAT on your fares. Most drivers will not reach that level.

Voluntary registration

You can register for VAT voluntarily even when your turnover is below the threshold. For some businesses that makes sense, usually where they can reclaim VAT on large purchases or mainly serve VAT-registered customers.

For most private hire drivers, who carry members of the public rather than businesses, voluntary registration rarely helps. It means charging VAT you would not otherwise charge, and dealing with quarterly VAT returns. The Flat Rate Scheme can offer a small advantage in some cases, but it needs working through on the actual numbers before you commit.

When to get your position checked

The threshold is £90,000, but the time to act is before you reach it, not when you arrive. A good point to get your position assessed is when your combined gross turnover across all platforms is heading towards £80,000 in a rolling 12-month period.

That £80,000 figure is not a rule, it is a buffer. It gives you room to plan while you are still below the £90,000 line. Because the threshold is measured on a rolling 12 months, your turnover can pass it without an obvious single moment, and registering late means HMRC can backdate your registration and ask for the VAT on past fares even though you never charged it to passengers. Leaving a margin avoids that.

We assess whether you need to register, whether the Flat Rate Scheme would suit you, and we handle the registration and quarterly returns if you do.

Common questions

This page explains the VAT position for private hire drivers in general terms. The treatment that applies to you depends on which platform you drive for, whether you drive in London or elsewhere, and the exact terms of your own contract. The rules here are a simplified version of a more detailed set of tests. Do not rely on this page alone to decide whether to register. Check your own circumstances, or take advice, before you act.