Business rates in the spotlight

The Treasury has launched a review of the business rates. The government’s objectives are to reduce the overall burden on business improve the current business rates system and consider more fundamental changes in the medium to long term. The document includes some possible alternatives to business rates including an online sales tax. It states this ‘could be levied on the revenues that businesses generate from online sales to UK customers and focused on sales in direct competition with those carried out through physical premises’.

Exploring the options for taxing online shopping as a potential replacement for business rates is a reasonable suggestion said Adam Harper Association of Accounting Technicians director of strategy and professional standards. He added: ‘AAT has previously recommended that online marketplaces should be liable for the collection and remittance of VAT as it would reduce VAT evasion level the...