Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Voluminous VAT

24 January 2017 / Michele Harris
Issue: 4584 / Categories: Comment & Analysis
istock-187536915_fmt

The employment status of clients and their workers is critical to avoiding the accumulation of unexpected VAT liabilities. 

KEY POINTS

  • The Uber case suggests that the lines between employed and self-employed remain blurred.
  • Whether a hair stylist is self-employed should be clear.
  • Failure to have a written contract could be detrimental.
  • Stylists must be responsible for their work environment.
  • The importance of daily practises to determining status.

The ruling of the Employment Tribunal in October 2016 in Aslam Farrar and Others v Uber 2202550/2015 relating to the online transportation network company and those working for it demonstrates that the lines between employed and self-employed are just as blurred as they always were. As well as its obligations to its workers Uber may be facing a huge VAT bill if the current ruling is not overturned and this is a cautionary tale for many different trades to get their...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon