This FAQ page provides general information only and is intended to help private hire drivers understand VAT registration at a high level. It does not constitute financial, tax, or legal advice, and should not be relied on as such.
If you want to read more information about VAT registration, please visit gov.uk ↗, or consult with an accountant or financial advisor.
Please let us know your VAT registration status and details here ↗.
What is my VAT number?
If you’re VAT registered, your VAT number is 9 numbers long, sometimes with ‘GB’ at the start (such as 123456789 or GB123456789). It will be written on your VAT registration certificate, you can check it here ↗.
What is VAT?
VAT is a tax on most goods and services in the UK. If you are VAT registered, VAT may be due on certain taxable supplies you make, in accordance with UK VAT law. You are responsible for determining when VAT applies and for accounting for any VAT due to HMRC, including any VAT you may be entitled to reclaim on eligible business expenses.
What does VAT registration involve?
VAT registration means:
- Registering with HMRC for VAT, usually online ↗.
- Charging VAT (usually at the standard rate) on taxable supplies.
- Submitting VAT returns, usually every quarter.
- Paying any VAT due to HMRC by set deadlines.
- Keeping appropriate VAT records.
Some drivers manage this themselves, while others use accountants or bookkeeping services.
To register online, you will need details about your business, turnover, and bank account. Once registered, HMRC will issue a VAT number and confirm your VAT return periods.
Who needs to register for VAT?
You must register for VAT if
- Your taxable turnover exceeds the VAT £90,000 per year, or
- You expect your turnover to exceed the threshold within the next 30 days.
You can also choose to register voluntarily, even if their turnover is below the threshold.
Why do some private hire drivers choose to register for VAT when below the threshold?
Drivers may choose to register for VAT to reclaim VAT on certain business expenses (such as car maintenance and fuel costs).
Can I register for the Flat Rate Scheme?
If you expect your annual turnover to be less than £150,000 you can register for the Flat Rate Scheme.
Under the Flat Rate Scheme, you pay HMRC a fixed percentage of your VAT-inclusive turnover instead of accounting for VAT on each individual transaction. The scheme may simplify VAT reporting for some businesses, but it may not be suitable for everyone.
For transport and private hire work, the VAT flat rate is set at 10%.
On the flat rate scheme you can’t reclaim VAT on your business expenses, other than specific capital assets over £2,000.
Important: Whether the Flat Rate Scheme is appropriate depends on your individual circumstances. You should check the latest HMRC guidance or seek professional advice before registering. You can find our more information about the Flat Rate Scheme at gov.uk ↗.
How does VAT apply to private hire services and trips with Bolt?
Private hire services may constitute taxable supplies for VAT purposes. Whether VAT is due, and on what amounts, depends on your individual VAT status and circumstances.
Bolt acts as an intermediary platform connecting drivers with passengers. Bolt does not determine your VAT obligations.
By providing your VAT registration number to Bolt, you confirm that you are VAT registered and agree to enter into a self-billing arrangement with Bolt. Under this arrangement, Bolt is authorised to issue self-billed receipts and, where applicable, VAT invoices on your behalf in accordance with UK VAT rules.
What records do I need to keep if I am VAT registered?
Typically, VAT‑registered drivers need to keep
- Records of trips and income
- VAT invoices issued and received
- Expense receipts where VAT is reclaimed
- VAT return calculations
Most records must be kept for at least six years. For more information please visit gov.uk ↗, or consult with an accountant or financial advisor.
Where can I find further information or support?
You may find it helpful to
- Visit the official HMRC website for up‑to‑date guidance.
- Speak to a qualified accountant or tax adviser.
- Use HMRC’s VAT helpline for general queries.
