Flexible fare negotiated in taxi trial

A TAXI price bidding trial is taking place in Newcastle, as the transport company involved criticises plans for a “taxi tax”.

- OWEN YOUNGER

Bolt, a European ride-sharing app, has described the potential of a 20% VAT on private hire fares as “incredibly harmful”.

The company says that changes would ‘disproportionately affect shift-based workers and vulnerable people who rely on taxi services, with Chancellor Rachel Reeves thought to be considering announcing this plan to help raise funds in today’s Budget.

Currently, many taxi drivers are in a position where they do not have to charge VAT on journeys, because they are classed as self-employed and they fall under the yearly earnings threshold to do so.