Digital Services Tax

Retail giantAmazon will NOT be impacted by £500m digital services tax. However the smaller retailers will be, HMRC admits. However, traders who use the site will be, the HMRC has revealed.

The Guardian claims the online retailer will only have to per a 2% charge on revenues it receives from third-party sellers trading on its marketplace. In June Rishi Sunak signed a letter alongside counterparts in France, Spain and Italy declaring that tech giants needed to ‘pay their fair share of tax’.

Seven months after the tax was announced, HMRC has revealed Amazon, paid £293million in taxes. On sales of £13.73 billion will not be affected by it.

Digital Services Tax

The Digital Services Tax was announced in March. With the hope that Facebook, Google and Amazon would make a ‘fair contribution,’ the Treasury had said. ©AP

  • Two per cent on tax on internet giants will not impact Amazon, HMRC admits 
  • Treasury said Digital Services Tax would make companies pay ‘fair contribution’
  • Business leaders say the tax is penalising smaller companies who use Amazon  

With Amazon expected to cover the cost by charging higher fees. This results in putting it at an advantage compared to the businesses that use the website.

Should the Digital Services Tax be ditched?

In August it was reported that the Treasury was considering ditching the tax. Mr Sunak concluded that the £500million a year it is expected to raise is a pinprick compared with the hundreds of billions of pounds dent to the nation’s finances caused by the coronavirus epidemic.

Business groups have criticised the levy following this latest revelation. Lord Leigh of Hurley told the House of Lords: ‘It is clear that the UK government is not taxing Amazon properly. It is allowing it to avoid tax on its own sales through the marketplace’.

‘This puts regular retailers at a significant disadvantage. The digital sales tax does not achieve its objective of yielding more revenue from the likes of Amazon. However, it is simply passed on to its suppliers in the marketplace, which have to absorb this tax in their margin.’

Announcing it earlier this year, the Treasury described the levy as ‘a new 2% tax on the revenues of search engines. Including, social media services and online marketplaces which derive value from UK users’.

Businesses should make a fair contribution

The Government department hoped the measure would ‘ensure large multinational businesses in-scope make a fair contribution to supporting vital public services,’ it wrote in March.

The British Independent Retailers Association has voiced its own opposition. They warned the tax has penalised smaller retailers while giving Amazon the edge.

An Amazon spokesman said: ‘Like many others, we have encouraged the government to pursue a global agreement on the taxation of the digital economy at OECD-level rather than unilateral taxes. Rules would then be consistent across countries and clearer and fairer for businesses.’

IT does not have to be taxing

Who is likely to be affected? Large multi-national enterprises with revenue derived from the provision of a social media service, a search engine or an online marketplace to UK users. This is you if your website turns over more than £25 million in the UK! Hats off if you fall into this category. You are one of the few as the Government had some very specific targets in mind when devising this tax, introduced by the Government as of 1st April 2020.

Unfortunately, we are unable to help Amazon with their tax problems! However, LIS clients do benefit from our years of IT experience. Contact the LIS Help Desk to see how we can help your business. With an approach based on the socially distanced human touch, our knowledgeable team will help you achieve your business goals.

LIS – SECURING YOUR DIGITAL WORLD

#Digital #Tax #ITSupport #Business

Article 13 – Brave New World?

This could change the Internet forever… What you need to know about Article 13 (“the meme ban”), the new copyright directive and Article 11 (“the link tax”).

MEPs approved Article 13 in a vote in the European Parliament. This went unnoticed by many camouflaged by the Brexit excitement. However this is no minor issue, it is going to be a sea change for the Internet. Now the vote has been passed, the next step is for the laws of individual European countries to be changed to enact the new rules. Countries are free to interpret it and legislate as they see fit. So the only certainty right now is that there is going to be a lot of heat generated. Small businesses, bloggers and all users of the web are likely to be caught in the fall out one way or the other. You do need to be aware if you publish or link to content online. Who doesn’t?

If your business is going to be affected start planning now and contact LIS to assist.

#copyright #internet #business #brexit #memeban #linktax #article13 #article11

What is Article 13? The EU's divisive new copyright plan explained 

Article 13 of the EU’s new copyright directive has sparked huge controversy online, with YouTube campaigning strongly against the proposal. We explain why

 

Business Boom or Bust?

Boom or bust? The evidence is at best unclear!

UK business hits the brakes: 2019’s first quarterly report from the Chambers of Commerce.

PS we refuse to take part in a recession. Business is booming here 👍

Confused? Well yes!

How do you fix the 2020 problem without breaking the bank? Are we facing a massive recession? Is Brexit a cloud with a silver or maybe even gold lining? Are we just putting a brave face on things as we rearrange the deck chairs on the titanic? Is it boom or bust?

With all this going on companies are expected to managed the phasing out of old technology and take on increased business obligations with all the associated costs and risks. To make your tech decisions easier, LIS has finance options which can spread the costs over many years, including hardware, maintenance, support and setup. We can increase business efficiency through automation and systems integration. If you need to look at ways to improve your IT without monster cost then contact LIS and we will give honest, realistic, professional advice.

#business #finance #brexit #commerce #2020

 

The British Chambers of Commerce?s quarterly economic survey ? the largest private sector survey of business sentiment and leading indicator of UK GDP growth ? found that key indicators of UK economic health weakened considerably in the first quarter of 2019. The balance of services firms reporting a rise in export sales at its lowest level in a decade The balance of firms reporting improved cashflow turned negative for the first time since 2012 Investment intentions in both manufacturing and services sectors at lowest level for eight years Against a backdrop of a slowing global economy, escalating Brexit uncertainty, and rises in business costs as the UK enters a new tax year, the latest results from the survey of over 7,000 businesses ? employing around one million people ? reflect a deterioration in many gauges of the UK?s economic strength. In the services sector, the percentage balance of firms reporting an increase in export sales stood at zero, its weakest level since 2009 and the orders balance turned negative (more firms reporting that orders have decreased than those reporting an increase) for the first time in eight years. The balance of firms reporting improved domestic sales and orders also weakened significantly in the quarter. Among manufacturers, the percentage of firms reporting an increase in domestic and export sales and orders dropped back to their 2016 levels. The balance of firms reporting improved cashflow ? a key indicator of business health ? and which has been declining over recent years, has now gone into negative territory for the first time since 2012. The lack of clarity over the UK?s future relationship with the EU is continuing to weigh on investment intentions in both the manufacturing and services sectors. The balance of firms who looked to invest in either plant and machinery or training dropped in both sectors to their lowest level in eight years. Business confidence in profitability and turnover also deteriorated sharply in the quarter. The leading business group has been calling for an end to the relentless uncertainty, which as the latest results from the long-standing business survey highlight, has damaged the confidence and investment plans of business communities. Westminster must ensure that a messy and disorderly exit is avoided and provide firms with certainty on future conditions to prevent further declines. To kickstart strong growth in the economy, government must return its attention and energy to removing barriers to growth in the domestic environment. Ill-timed increases in business costs ? including compliance with Making Tax Digital, higher business rates for some firms, increased employer pension contribution requirements, and more ? are also raising costs pressures for companies across the UK at a time when government should be looking to reduce rather than increase burdens. Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said: ?Our latest survey suggests that UK growth nearly ground to a halt in the first quarter of 2019, with increasing anxiety over Brexit and weakening global economic conditions driving a significant deterioration in almost all the key indicators in the quarter. ?The services sector suffered the more substantial loss of momentum in the first quarter with both domestic and international activity slowing sharply in the quarter. The manufacturing sector continues to struggle amid tougher global and domestic trading conditions and rising cost pressures. The marked decline in the export indicators in both sectors suggests that net trade is likely to have been a drag on UK GDP growth in Q1. The deterioration in cash flow is concerning as it can leave firms more vulnerable to external shocks, including disruptions to supply chains. ?The forward-looking indicators are disappointingly downbeat with weakening orders, confidence and investment intentions pointing to precious little growth over the coming quarters, unless substantial action is taken.? Reacting to the Q1 results, Dr Adam Marshall, Director General of the British Chambers of Commerce, said: ?Our findings should serve as a clear warning that the ongoing impasse at Westminster is contributing to a sharp slowdown in the real economy across the UK. Business is hitting the brakes ? hard. ?These are some of the weakest figures we?ve seen in nearly a decade, and that?s no coincidence. The prospect of a messy and disorderly exit from the EU is weighing heavily on the UK economy, and must still be avoided. The unwanted prospect of a disorderly ?no deal? exit, and the serious damage and dislocation it would bring, is still just days away unless Parliament acts to avoid it. ?At the same time that firms are having to enact costly contingency plans, the cost of doing business here in the UK continues to rise. This week seesa new tax year with a number of changes adding to the upfront cost of doing business in the UK, including the introduction of Making Tax Digital and changes to auto-enrolment, leaving many firms facing more bureaucracy and new expenses. It beggars belief that ministers are piling on more and more costly obligations at a time that businesses are already having to cope with Brexit and uncertainty. ?For too long Brexit tunnel-vision has distracted government from fixing the fundamentals to support growth here in the UK. We need to see an increased focus on creating the conditions for business success here at home ? including concerted efforts to plug growing labour shortages, delivering an immigration policy that works for business and speeding up physical and digital infrastructure projects.? Key findings in the Q1 2019 survey: Manufacturing sector: The balance of firms reporting increased domestic sales fell six points to +15, while those reporting improved domestic orders also fell from +16 to +9 ? both are at their weakest level since Q4 2016 The balance of firms reporting improved export sales fell from +20 to +14, and the balance of firms reporting improved export orders dropped from +18 to +10 ? both their weakest since 2016 The balance of firms reporting improved cashflow dropped into negative territory for the first time since Q3 2012, standing at -1 (down from +10) The percentage of firms attempting to recruit fell from 67% to 62%, the weakest since Q1 2012. Of those, 79% reported recruitment difficulties, close to its record high The balance of firms increasing investment in plant/machinery fell in the quarter from +18 to +6, the weakest since Q4 2011, and investment in training from +19 and +14, weakest since Q3 2012 The balance of firms confident that turnover and profitability will increase in the next 12 months fell, from +41 to +26 for turnover and +27 to +13 for profitability ? both are at their weakest since Q4 2011 Services sector: The balance of firms reporting increased domestic sales fell from +18 to +10, the weakest since Q3 2016. Those reporting improved domestic orders fell from +14 to +5, the lowest since Q3 2012 The balance of firms reporting improved export sales fell from +14 to +0, the weakest since Q2 2009. Those reporting improved export orders dropped from +9 to -2, reaching negative territory for the first time since Q4 2011 The balance of firms reporting improved cashflow dropped in negative territory for the first time since Q4 2012, falling from +6 to -1 The percentage of firms looking to recruit fell slightly to 48%. Of those, 70% had recruitment difficulties ? the same as in the previous quarter, close to its record high The balance of firms looking to increase investment in plant and machinery fell from +10 to +1 (weakest since Q3 2011), and from +15 to +10 in training (lowest since Q3 2012) The balance of firms confident that turnover and profitability will improve over the next year fell slightly, from +37 to +26 for turnover (lowest since Q4 2011) and +28 to +19 in profitability (weakest since Q3 2016). Ends Notes to editors: Spokespeople are available for interview and a full QES is available from the press office. The BCC Q1 2019 QES is made up of responses from more than 7,000 businesses across the UK employing around one million people and is the largest independent business survey in the country. 1744 are manufacturers (25% of the overall sample), 5340 are service firms (75% of the overall sample)and 94% of respondents are SMEs (firms with fewer than 250 employees).Firms were questioned between 18 February and 11 March 2019 on a wide range of business issues, including: domestic sales and orders; export sales and orders; employment prospects; investment prospects; recruitment difficulties; cashflow; confidence; and price pressures. How are balances calculated? QES results are generally presented as balance figures – the percentage of firms that reported an increase minus the percentage that reported a decrease. If the figure is a plus it indicates expansion of activity and if the figure is a minus it indicates contraction of activity. A figure above 0 indicates growth, while a figure below 0 indicates contraction. For example, if 50% of firms told us their sales grew and 18% said they decreased the balance for the quarter is +32% (an expansion). If 32% told us their sales grew and 33% said they fell the balance is -1% (a contraction).

 

GDPR News

GDPR news – who received the first fines and why?

If you have still not completed (or started) your GDPR journey you can always contact LIS for assistance. We will deal with the technicalities of system changes needed and highlight any business issues you need to consider.  Having recently reviewed our client base for GDPR we see some clients with their heads still firmly buried in the sand. The bad news is that it is not going away! Worryingly even some of our local government clients are refusing to move on clear significant breaches of the GDPR rules on grounds of cost.  If your business has not completed a review and made the changes needed then please don’t wait – you don’t want to appear on this list!

#gdpr #dataprotection #business

The Hungarian National Authority for Data Protection and Freedom of Information (NAIH) recently issued two decisions dealing with breaches of data?

 

Making Tax Digital

Tax is going digital. Boring, yes. But needs to be addressed. Here’s what you need to know.

Accounting software companies are making hay…business have yet more changes and costs to absorb…

There are some significant knock on issues in terms of IT which LIS is well place to help with if required. Look at this problem in conjunction with the 2020 problem and remember to solve BOTH when making changes because by the end of the year you will need to anyway. No pressure!

#tax #business #accounting #yawn

Hese is the full latest detail for insomniacs…

https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat#supplementary-data