Uber’s U.K. Court Loss Leaves Behind $2.1 Billion Tax Question

Uber Technologies Inc.'s loss in a five-year U.K. battle over the employment status of its drivers opens up the question of whether the company will be liable to pay more tax.

The answer lies in Her Majesty’s Revenue and Customs’ interpretation of where Uber workers fit within its definition of employee. If HMRC decides that the drivers are indeed employees, campaigners like Good Law Project estimate that Uber could owe as much as 1.5 billion pounds ($2.1 billion) in back taxes.

“If drivers are supplying their services to Uber, it follows they aren’t supplying them to passengers—and so Uber ...