TOMS Ending 2026: Big Opportunity for PHV & Minicab Operators
Beginning 2 January 2026, the UK Government will abolish the Tour Operators’ Margin Scheme (TOMS) for Private Hire Vehicle (PHV) operators. This change will directly affect large ride-hailing platforms that relied on TOMS to minimise VAT exposure.
For most independent PHV companies, the impact is very different: your VAT position remains exactly the same — while platforms like Uber will move to full 20% VAT.
Uber’s prices will likely rise in 2026 — but yours don’t have to.
What Exactly Is Changing?
The upcoming VAT framework for PHV operators includes:
- Removal of TOMS for PHV services
- Ride-hailing platforms moving to standard 20% VAT
- Independent operators continue under current VAT rules
- Competitive advantage shifts toward local PHV operators
In simple terms: Big-tech rides become more expensive. Local operators become more attractive.
A Rare Competitive Advantage for Minicab Operators
The end of TOMS shifts market dynamics and creates opportunities for independent fleets with strong digital infrastructure:
- Improved pricing competitiveness compared to ride-hailing apps
- Stable VAT application and clear invoices
- Better trust from corporate clients
- Professional service without marketplace fees
Operators who modernise their systems now will be in the strongest position in 2025–2026.
How SmartCar Helps You Take the Lead
SmartCar provides a complete mobility ecosystem built for automation, performance, VAT compliance, and business growth.
Dynamic Pricing
Adjust pricing instantly and remain competitive without sacrificing profit.
Corporate Tariffs
Create flexible pricing tailored to corporate accounts and long-term clients.
VAT-Ready Invoicing
Generate compliant invoices aligned with 2026 HMRC requirements.
Full Automation
Auto-dispatch, customer apps, driver apps, tracking, flight integration, vouchers, payments &