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Issue:- Thursday, 28 July 2016

Headlines and reports on this page = 4 news items.    Page - 5.

Look again at plans to target online VAT loss

THE Chartered Institute of Taxation (CIOT) has called on the Government to rethink its approach to ensuring online sellers pay the correct amount of VAT.  Non-EU traders who sell goods to UK consumers via online marketplaces are not always paying the correct amount of VAT and duty to Britain's HMRC, even though these traders should normally register for VAT in the UK and charge VAT on these sales.  Popular online marketplaces include:- eBay and Amazon.  Under HMRC's proposal overseas traders would appoint a UK Tax representative who will be liable for their VAT and/or would need to provide security to guarantee payment. If these traders fail to comply and online marketplaces do not help stop the abuse, the online marketplaces themselves will become jointly and severally liable for the unpaid VAT.

The CIOT has told HMRC that its proposal is at risk of capturing too many businesses through the use of imprecisely defined terms, such as a 'fulfilment house' (which include online marketplaces). This risks many businesses, including SMEs, being burdened unnecessarily.  The CIOT also told HMRC that it believes the primary targets should be those overseas sellers who seek to evade the Tax and not legitimate UK businesses which unwittingly deal with them.

Peter Dylewski, Chair of the CIOT's Indirect Taxes Sub Committee, said:- "We fully support HMRC's will to tackle this issue because internet trading makes it easy for overseas businesses to sell into the UK, but difficult for HMRC to ensure that UK VAT is being properly declared. Our concern with HMRC's proposal is that it targets intermediaries in the supply chain and not those who are failing to comply. On the 1 hand, this places a burden on legitimate UK business and on the other hand it may unintentionally give the impression to potential Tax evaders that they will not be pursued by HMRC. We would therefore urge the Government to explore a fairer and more effective approach."

The CIOT is encouraging HMRC to explore other possible solutions, such as the undisclosed agency route; the online marketplace could remit the VAT on the full sale price of the goods to HMRC and the proceeds (net of its commission) to the seller. Overseas businesses could opt out of this arrangement if they could prove they are Tax compliant or not actually in business.  The consultation forms part of a package of measures announced in Budget 2016.

Fatal road road traffic collision in Formby

ON Friday, 22 July 2016, at about 2.30pm, emergency services were called to a report of a collision involving 2 vehicles on Orrell Hill Lane, close to the Red Squirrel pub. We a informed that Betty Jones, 84 years, from Southport, had been taken to Hospital for treatment, but later died. The drivers of both cars stopped at the scene and are assisting Officers. Merseyside Police are asking that anyone who was in the area at the time who may have witnessed this incident to contact the MSOC Roads Policing Officers on:- 0151 777 5747, quoting reference number:- '0516168080', or Crimestoppers, anonymously, on:- 0800 555 111.

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