Uber Fighting U.K. Tax Office on Driver Employment Status

Uber Inc. is in a dispute with the U.K. tax office over the employment status of its workers with implications for the ride-hailing service to collect value-added tax retrospectively, according to its latest financial statement.

Her Majesty’s Revenue and Customs is arguing Uber should be classified as a transport company, like a minicab business. This would mean that Uber’s drivers would not be considered as freelancers, but as workers.

“Being classified as a transportation provider would result in a VAT (20%) on Gross Bookings or on the service fee that the Company charges Drivers, both ...