Small firms in the UK could be looking at having to pay a new tax, as it has been confirmed that Chancellor Rishi Sunak is weighing up introducing a tax for online sales.

Should this be introduced, it would be likely that small businesses would have to pay a 2% tax on products that are sold over the internet. The thinking behind this is that it would help bricks and mortar shops in high streets across the country to get going again, and potentially avoid recession by providing them with an edge over online shops when it comes to setting prices.

It is a measure the Commons Treasury committee has been calling for since last year, as high street shops have higher overheads and it would bring in an additional £2 billion annually for the Treasury. However, it has also been criticised by the Taxpayers’ Alliance, which argues that ordinary households would be paying out £56 more a year on average if it is introduced.

It would also have a real impact on those small businesses that do a lot of their trading online, although not all smaller firms in the UK would be affected. Those that found themselves facing a further tax burden could get guidance about possible tax relief to offset it from a small business accountant in South Yorkshire or whichever region they are located in.

The idea is one of several that are being considered in the current consultation over business rates.

    Get in touch

    Please fill in the form below to get in touch.

    I am happy for you to contact me