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HMRC v Wheels Private Hire

In HMRC v Wheels Private Hire [2017] UKUT 51 (8 February 2017) the UT found that Wheels was making separate exempt supplies of insurance services to the taxi drivers who leased its cars.

Wheels ran a taxi business. Some of the drivers rented its cars for £120 per week and they had the option of adding insurance for an additional £45 per week. The issue was whether the payment for insurance was for a separate and exempt supply (VATA 1994 Sch 9 Group 2) or whether it was for part of a single standard rated supply.

The UT rejected the contention that Wheels could not make exempt supplies of insurance noting that it insured the vehicles with an insurance company and procured cover for the drivers. The fact that the drivers would have to rely on Wheels to enforce the cover did not affect the position. Similarly ...

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