What is VAT and why do I see it in the journey breakdown?
From 2 January 2026, the UK Government increased the VAT on Private Hire Vehicle journeys done by London operators to 20% of the passenger fare.
VAT is paid to HMRC and the remaining fare is divided between Wheely and the chauffeur.
If you want to see the full fare composition, simply tap “View breakdown”.
Which journeys are now eligible to VAT?
These changes apply to journeys performed by chauffeurs who do not hold their own operator licence and whose vehicles are TfL licensed, and therefore contract with Wheely London Ltd.
How to keep more earnings per journey?
Become FRS-Registered
The UK government has recommended that chauffeurs voluntarily register for the Flat Rate Scheme, even if their turnover is below the VAT registration threshold.
By joining the scheme, your earnings can increase by an average of 5% per journey. In addition, Wheely offers a £200 incentive upon registration.
Get Licensed Outside London
If your private hire driver and vehicle licence is issued outside London, VAT will not be deducted from the passenger fare, and your earnings will be approximately N% higher per journey.
Wheely offers a £3,000 Upgrade Bonus to eligible chauffeurs who upgrade to an approved petrol or diesel vehicle and meet the journey requirement. Full bonus details are available online.
This article is for informational purposes only and does not constitute tax advice. Partners are responsible for complying with HMRC rules regarding VAT.
Contents are provided for general information purposes only. It does not constitute tax advice. HMRC rules can vary depending on individual circumstances, and you may wish to seek advice from a qualified accountant or tax adviser before making any VAT registration or scheme decisions. If a chauffeur is VAT registered (either with Flat Rate Scheme or without) VAT must be payable by the chauffeur.