The Caterer
Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Chancellor's consideration of online business tax welcomed by hospitality sector

13 August 2018 by

Chancellor Philip Hammond has said he will consider the introduction of a tax on online businesses, in a move welcomed by the hospitality industry.

The chancellor's comments have followed a spate of high-street closures across retail and hospitality, with many struggling businesses citing onerous rates and rents.

Hammond told Sky News: "We want to ensure that taxation is fair between businesses doing business the traditional way and those doing business online," he said.

"That requires us to renegotiate international tax treaties because many of the big online businesses are international companies.

"If we can't get international agreement to do this we may have to look at temporary tax measures to rebalance the playing field until we can get international agreements."

UKHospitality chief executive Kate Nicholls welcomed the news. She said: "The taxation system must evolve to keep pace with the impacts of the rapid rise in digital business so the chancellor's proposals are certainly welcome.

"High-street businesses, particularly hospitality businesses, are facing an enormous tax inequality and the government desperately needs to take proactive steps to address this to help support vital businesses in the heart of communities.

"Hospitality businesses are at a particular disadvantage, paying 10% of all business rates despite only generating 3% of turnover. As it stands, the hospitality sector is overpaying business rates by £1.8b per year.

"Revenues from taxing digital companies can be used to slash the burden on high-street properties hardest hit by business rates, while the government reviews the tax system and implements one that is fit for the 21st century."

Business rate revaluation brought forward but sector slams ‘missed opportunity'>>

Call for rates relief system review amid fears it breaches EU law>>

Get The Caterer every week on your smartphone, tablet, or even in good old-fashioned hard copy (or all three!).

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking