London cabbies might sue Uber

29 January 2016

uber taxi The black-cab drivers of London are weighing up legal action against Uber. They're looking at getting their licence revoked so Uber can't work in the city.

What's their beef? They say that the firm pays no corporation tax in the UK, so they should be stopped from trading. You may remember that it turned out Uber only paid £22,134 in UK corporation tax in the most recent financial year.

General secretary of the Licensed Taxi Drivers Association, Steve McNamara said: "Any four black-cab drivers pay more tax than Uber. We’re looking at a judicial review of Uber’s original licence [to operate in London]. It seems to us that Uber is not fit and proper. Uber is a worldwide conglomerate that has ignored regulators in other parts of the world. How can it be fit and proper in London?"

"Even Steve Hilton [David Cameron’s former adviser] wants to put a spotlight on people within Downing Street. How can it be right that these companies get away without paying tax?"

Of course, big companies not paying tax is a hot topic at the moment. However, Uber aren't having it and say that people shouldn't start comparing them to the likes of Google.

An Uber spokesperson said: "The comparisons being made with other companies are misplaced. They are profitable and have been for years. Uber is younger and still investing heavily. We make a loss and corporation taxes are paid on profits not revenues. In addition the vast majority of the revenue generated via our technology stays with our driver-partners in the local economy. When it comes to comparisons with taxis unlike black cabs we don’t take cash so all payments to drivers are traceable by the tax authorities."

Did you catch that? A little shade thrown at cabbies, implying that some cash payments might end up slipping past the tax man. Either way, this scrap isn't going away any time soon.

TOPICS:   UK News

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