Senior MP questions Mayor over 'Uber' taxi app

A senior MP has accused the firm behind popular cab-hailing smartphone app 'Uber' of unfairly undercutting London taxi drivers by "opting out of the UK tax regime".

Black cab and licensed taxi drivers protested over the app in June. Credit: Gareth Fuller/PA Wire

Margaret Hodge, the chairwoman of the House of Commons Public Accounts Committee, wrote to London Mayor Boris Johnson demanding to know why Transport for London allowed cars to take bookings through the app without a licence to operate in the capital.

Because the Uber app is operated via a company in the Netherlands called Uber BV, which makes the booking, takes the payment and issues the receipt, corporation tax is payable in Holland, rather than the UK, she said.