Digital Services Tax has raised £358 million

    Luke Mudd
    23rd December 2022
    Home » Categories » Business » Digital Services Tax has raised £358 million

    The UK’s Digital Services Tax (DST) raised £358 million from large digital businesses in the 2020/21 tax year, according to data published by the National Audit Office (NAO).

    The DST was introduced in April 2020 to combat the government’s fears that the international tax system ‘did not recognise the value being generated for digital companies through UK online users’. The tax targets firms that make large revenues from UK users of social media platforms, online search engines and online marketplaces.

    The NAO found that HMRC collected 30% more DST in its first year than originally predicted. It said that most firms that are liable for the tax now pay more in DST than corporation tax.

    Gareth Davies, Head of the NAO, commented:

    ‘The DST has succeeded in raising more tax from some big digital companies and has brought in more money than forecast in its first year. However, HMRC could still face challenges enforcing compliance, especially among groups without a physical presence in the UK.

    ‘It should ensure that big digital companies operating beyond the UK’s borders are aware of the tax and comply with it.’

    Internet link: NAO website

    Need Some Advice?

    Looking for some help or a little advice?

    Call today on 01484 534431 or fill in our enquiry form below, and we’ll call you back.

    Sustainability for businesses

    Last Tuesday afternoon I found myself in deepest darkest Marsden, Dark Woods Coffee to be precise where I attended a session on sustainability. It is a topic that I am…

    National Minimum Wage Update

    When it comes to paying the National Minimum Wage (NMW), mistakes are easy to make, and employers may not be aware if something has gone wrong. Common issues like unpaid…

    Latest guidance for employers

    HMRC has published the latest issue of the Employer Bulletin. The March issue has information on various topics, including: PAYE Settlement Agreement paymentreporting expenses and benefits for the tax year…

    UK borrowing reduces Chancellor’s wiggle room

    Higher than expected government borrowing has reduced the Chancellor’s ‘wiggle room’ at a pre-election Budget. Government borrowing – the difference between spending and tax income – was £120.7 billion in the year…