Statements of Earnings and VAT
Will I receive a detailed statement of earnings?
Yes, you will receive a weekly statement of your earnings broken down by booking. You will receive this by email and it is also accessible via the partner dashboard at chauffeur.wheely.com.
Will I receive an invoice for the commission I paid to Wheely?
Yes, we will send you an automated monthly invoice for your records. You will not need to do anything when you receive this as we will have already taken our commission automatically. This is an official document that you can use for your taxes (e.g. for claiming back VAT if you are VAT registered).
VAT
This article is for informational purposes only. It outlines the changes Wheely will be implementing to mitigate the impact of the new VAT rules for all participants, and does not constitute tax advice. Partners are responsible for complying with HMRC rules regarding VAT.
Important VAT Changes from 2 January 2026
From 2 January 2026, the UK Government will be increasing the VAT on Private Hire Vehicle journeys done by London operators to 20% of the passenger fare.
What is Wheely changing?
Fares: An average of 10% fare increase in City and Airport Fares will apply across all tariffs to help balance the impact while keeping passenger demand steady. Exact changes will be announced separately.
Chauffeur Rates: For those chauffeurs who are getting paid by Wheely London Ltd, the amount of your payout will be calculated differently depending on your VAT registration status.
Who will be affected by the changes to chauffeur rates?
These changes apply to chauffeurs who do not hold their own operator licence and whose vehicles are TfL licensed, and therefore contract with Wheely London Ltd.
There are no changes for partners who are licensed outside of London (or who have an operator’s licence anywhere in the UK), as they act as the principal and are paid by Wheely Technologies Ltd directly. They will continue paying a 30% commission (Business/ First/ XL) to Wheely Technologies, but will still benefit from the higher fares.
How will chauffeur rates be calculated going forward?
The amount of your payout is calculated depending on your VAT status.
For Business/ First/ XL Class:
Non-VAT Registered Chauffeurs: Chauffeur Rates will be set to 60% of the passenger fare.
VAT Registered Chauffeurs: Chauffeur Rates will be set to 70% of the passenger fare.
How to mitigate these changes?
You may want to consider the following options depending on your situation:
Become FRS-registered:
The UK government has recommended chauffeurs to voluntarily register for the Flat Rate scheme, even if their turnover is below the registration threshold. In this case, your net earnings per journey will stay the same.
Click here for more details about FRS.
Partner with Wheely Technologies directly if you are licensed outside London:
If your private hire driver and vehicle license is outside of London, there will be no middlemen such as Wheely London Ltd (or another London operator) and you can partner with Wheely Technologies Ltd directly.
If you are interested in exploring licensing options, you can learn more here.
Example of how your net earnings per journey may change
Current | Effective January 2, 2026 | Effective January 2, 2026 | Effective January 2, 2026 | |
Tax Profile and License Location | Not VAT Registered | Not VAT Registered | Flat Rate Scheme | License outside London (Not VAT Registered) |
Passenger Fare | £100 | £111 | £111 | £111 |
Chauffeur Earning | £70 | £66 | £77.7 | £77.7 |
Less: VAT payable | 0 | 0 | £7.7 | 0 |
Chauffeur Earning less VAT payable | £70 | £66 | £70 | £77.7 |
Figures shown in the table are all inclusive of VAT, where it is charged.
Please note that the table is provided as a high-level example to illustrate how your net earnings per journey may change. There may be other business considerations that may impact your decision on whether to register for the VAT under the Flat Rate Scheme (i.e. chauffeurs using the flat rate scheme will be paying some VAT to HMRC but be unable to recover VAT on costs incurred to operate their business). We therefore recommend that you obtain your own tax advice before deciding whether to register.
Wheely’s support
Wheely will continue to support you through this transition and will share key highlights of potential changes you may wish to implement, as well as the next steps required to continue working with us in upcoming communications.
Support with Flat Rate Scheme Registration
We have partnered with ANNA Money to support chauffeurs with VAT registration and joining the Flat Rate Scheme.
Please note that Wheely does not provide tax advice, and we strongly recommend that you seek independent professional tax advice. Partners are responsible for complying with HMRC rules regarding VAT.