As announced in the Autumn Budget 2018, from April 2020 the government will introduce a new 2 per cent tax on revenues of certain digital businesses which derive value from their UK users.
The tax will:
– Apply to revenues generated from the provision of search engines, social media platforms and online marketplaces
– Apply to revenues from those activities that are linked to the participation of UK users, subject to a £25 million per annum allowance
– Only apply to groups that generate global revenues from in-scope business activities in excess of £500 million per annum
– Include a safe harbour provision that exempts loss-makers and reduces the effective rate of tax on businesses with very low profit margins.
At Beavis Morgan, we specialise in working with SMEs and entrepreneurial people across a wide range of sectors, providing guidance and strategic advice to help in formulating plans for your business in order to strengthen its prospects of success, achieve growth and maximise wealth. Our tax specialists, some of whom are former HMRC Inspector of Taxes, are well versed in dealing with all types of tax issues.
If you have any concerns or queries relating to the announcements made within the Chancellor’s Autumn Budget, our tax experts will be readily available to guide you through the tax maze and help you with bespoke solutions to ensure that you and your business are as tax efficient as possible.
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