Our tax location is in the UK which means Kapten pay all taxes due to the UK.*
We are paying VAT of all our fares, in contrast to Uber and other competitors. On fares, drivers pay Kapten 12.5% commission + VAT (so 15%). This means 85% of the fare goes to the driver (plus tips and any extras they may be eligible for, such as ride bonuses or our Clean Air bonus), 12.5% goes to Kapten and 2.5% goes to the Exchequer in the form of VAT.**
Drivers are self-employed, however, most will not be VAT-registered as any business with an annual VAT taxable turnover below £85,000 is not required to pay VAT (at the time of writing this article, please check the link for most up to date threshold).
We have launched recently, so we haven't achieved any profit as of yet but when we do, we will naturally be paying corporation tax of this.
* Please note: The specific details of is article is relevant for Kapten in the UK. We pay local taxes in each country that we operate in.
** Please note the percentage mentioned for commission (and thereby also VAT) is subject to change.