Treasury eyes VAT charges for gig economy firms

The review is part of the government’s aim of “ensuring fair competition and a level playing field for all businesses, whether operating in the sharing economy or as a traditional business, regardless of their size and location”.Based on the predicted size of the gig economy by 2025, it would equate to a loss of up to £28bn a year in VAT for the Treasury.The consultation document highlighted examples of the business practices it wanted to investigate for action where “no VAT [was] being charged where it might have been in the traditional economy”.These included car-booking rides where “the drivers at this firm are all self-employed”. The Treasury added that the review was designed to “test the government’s view of the VAT challenges the sharing economy creates”.

Recent Posts

Firms happy to reopen but have pandemic debt hangovers

"Whilst we are incredibly grateful for the support that we have seen from the government, there has still been the cost of keeping our team members on furlough, as well as paying our rent, service charges and utility bills, so it has had a significant impact on our...

read more

Bid to make financial terms and conditions clearer

Sheldon Mills, executive director of consumers and competition at the FCA, told the BBC this meant terms and conditions - as well as prices - would become clearer, it would be absolutely clear how customers could complain, additional charges would be clear and fair,...

read more