UK Will Unilaterally Tax Web Giants

Payroll Service BirminghamLast years’ Conservative Party Conference was held in Payroll Masters’ backyard. Literally a stone’s throw from our head office in Birmingham.

In his conference speech Chancellor, Philip Hammond threatened to unilaterally tax the web giants. He said the Conservatives had led the debate on international tax reform for the digital age. He argued that the tech giants such as Amazon, Google and Facebook should make a fair contribution to paying for public services in all the countries they do business.  We agree with this because these massive global tech companies reap the benefits of our educated workforces, health services and transport infrastructure. All of which is paid for through taxation.

Hammond went a step further in his 2018 Autumn Statement. Here he announced plans to introduce a new 2% Digital Services Tax from April 2020. We had been concerned that any tax announcements would affect all businesses that trade on-line, but the Chancellor stressed that this new tax would only be levied on profitable companies that have at least £500m a year in global revenues.

At the Conservative Party Conference, the Chancellor also spoke about reforms to the government’s apprenticeship levy, and he announced that £20m would be invested in a new network to help SMEs to learn new management skills from mentors from the likes of KPMG and Siemens. In our experience at Payroll Masters, if a business wants to apply for apprentices or enrol in government training initiatives there is always an applications process that requires numbers.  Often asking for details of number of employees, how many new roles you have created and so on.  By outsourcing your payroll function to Payroll Masters all of these figures would be available quickly and accurately.  So please don’t let bureaucracy put you off growing your business. To find out more about our payroll services contact our Birmingham head office and we’ll be pleased to help.

Leave a Reply

Your email address will not be published. Required fields are marked *