Feeds

Government flies kite for VAT changes

Tears for Tesco as Channel Islands tax holiday officially OVER

Choosing a cloud hosting partner with confidence

The Coalition Government seems to be serious about changing VAT rules which currently allow big retailers to dispatch items via the Channel Islands in order to avoid paying the tax.

The exemption was designed to protect Guernsey's flower growers but has been exploited by the likes of Tesco and Amazon who can undercut prices for DVDs and CDs by selling them VAT-free from warehouses on the islands.

The Treasury reckons it is losing about £130m in tax per year thanks to the loophole. Lord Lucas questioned this figure because one of the largest companies involved in the trade turns over £500m.

Lord Sassoon told the House of Lords: "We are actively reviewing the operation of this relief. Ministers hope to be in a position to announce any possible changes to the operation of LVCR (low value consignment relief) flowing from the review in the Budget on 23 March."

The law was designed to protect small firms from excessive red tape by excluding small value items from paying VAT. The law also meant Customs and Excise were not forced to inspect every little parcel which arrives from outside the EU. Items below £18 can be imported without paying VAT.

In reality the law has made it all but impossible for independent CD or DVD sellers to compete unless they move to the Channel Islands. ®

Top 5 reasons to deploy VMware with Tegile

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Reducing the cost and complexity of web vulnerability management
How using vulnerability assessments to identify exploitable weaknesses and take corrective action can reduce the risk of hackers finding your site and attacking it.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.