Investigations into online platforms decline in 2020-21

In 2020-21 HMRC issued only 80 data requests to platforms for information about online sellers it suspected of evading UK VAT according to a freedom of information request from UHY Hacker Young. In the previous year it issued 2 684 data requests to online retail platforms such as eBay and Amazon. 

HMRC’s reduction in investigating VAT evasion from foreign sellers many of which are from China is likely to leave UK retailers at disadvantage according to the accountancy firm. Overseas retailers evading VAT are able to undercut domestic sellers who report all of their sales to HMRC and pay VAT. 

According to HMRC the reduction in data requests is aimed at easing the burden on businesses during the Covid-19 period. It said it has been prioritising the roll-out of support schemes such as furlough.  

Sean Glancy partner at UHY Hacker Young said: ‘Online...