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.

    Clarity on new border checks is vital, says BCC

    The government must clarify plans around new customs processes as firms remain in the dark about crucial aspects of their operation, says the British Chambers of Commerce (BCC). The first…
    From below of delighted aged male entrepreneur in classy outfit standing on street and speaking on cellphone while laughing and looking away

    Over 50s bucking decline in freelance numbers

    Tens of thousands more over 50s are now running their own businesses despite an overall decline in self-employment since 2020, according to the Association of Independent Professionals and the Self-Employed…

    HMRC sends warning to cryptoasset users

    As the use of cryptoassets continues to grow HMRC is warning people to check if they need to complete a self assessment tax return for the 2022/23 tax year to avoid…

    Raise VAT threshold to £100,000, says FSB

    The government should raise the turnover threshold for VAT from £85,000 to £100,000, according to the Federation of Small Businesses (FSB). The business group said that this would give firms…