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In the 2025 Budget, the government set out a package of VAT changes for UK firms that need to be grasped and prepared for before their 2026 launch. They affect how businesses set prices for PHV services. From 2 January 2026, VAT-registered PHV and taxi operators that enter into direct contracts with customers must add 20% VAT to the entire fare, as they will be expressly carved out of TOMS; see clause 79 of the Finance Bill 2026 (as introduced). In London, regulation already requires operators to contract directly with customers as a licensing requirement. In other regions, the position depends on how agreements are set up. What will this mean for operators and customers? At present, most private hire and minicab drivers who deal directly with passengers do not have to levy VAT on passenger fares. Typically this is because these drivers—many earning below the £90,000 per annum VAT registration threshold—are treated as self-employed contractors...
What were the key developments in 2024 The Employment Rights Bill The Employment Rights Bill 2024 (ERB), unveiled on 10 October 2024, consolidates a suite of rights and policy measures pledged by the Labour government within its ‘New Deal for Working People’ and the Labour Manifesto. For comprehensive information, consult the Practice Note: Employment Rights Bill—tracker...