Bolt Services UK Limited v The Commissioners for HMRC
Decision date: 15 December 2023
Neutral citation: [2023] UKFTT 1043 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
Bolt supplies on‑demand private hire journeys via its app and, acting as principal from 1 August 2022, treated those supplies as falling within the Tour Operators Margin Scheme (TOMS). HMRC decided TOMS did not apply; the First‑tier Tribunal allowed Bolt's appeal, holding that the passenger transport services supplied by Bolt are services of a kind commonly provided by tour operators or travel agents and therefore can fall within TOMS. The Tribunal also found that the services bought in from drivers were for the direct benefit of travellers and were not in‑house supplies nor materially altered so as to fall outside the scheme.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The Tribunal’s dispositive reasoning is that TOMS applies where a supplier provides services "of any kind commonly provided by tour operators or travel agents," assessed by a high‑level/general comparison; bought‑in services from other taxable persons that directly benefit the traveller and are not transformed into in‑house supplies fall within the special scheme. Use of a platform and ancillary customer support does not by itself convert bought‑in transport into an in‑house supply.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The decision suggests (obiter) that distinguishing scheduled from on‑demand rides by timing of booking is not a defensible determinative test for TOMS, and that provision of app‑based booking, 24/7 assistance and travel information would, if necessary, be additional services sufficient to bring transport within TOMS.