Essential reading for retailers and suppliers in the home improvement market

Retailers to investigate retail taxation

Published: 3 June 2013
The British Retail Consortium has announced that it is to investigate retail taxation - as B&Q's boss highlights the disparity in taxes paid by bricks-and-mortar and online retailers.
Retailers to investigate retail taxation
The BRC says it is to embark on a programme of work that will "look at the relationship between the fast-developing retail landscape and the tax regime - now and for the future", says director general Helen Dickinson.

"The reality is that retail is a people and property intensive sector and, while the reduction in headline Corporation Tax is valuable, other taxes on both people and property have continued to rise.

"This is an ongoing discussion and it's important to consider carefully how the tax system can best meet the interests of consumers, economic growth, stability and the retail sector as a whole over the longer term."

The BRC's study will include setting up a round-table group made up of members from all parts of the retail sector.

Meanwhile, Ian Cheshire, chief executive of B&Q owner Kingfisher, has told The Sun that it is unfair that physical retailers face crippling rents and rates while online players pay virtually nothing.

"The increase in rent and rates is squeezing the high street, forcing the shuttering of shops and leading to higher vacancy rates," he said. "For each £1 of sales, the online guys pay a lot less tax and we need a strategic rethink...We're not looking for a free pass, but a level playing field."

The Sun suggests that one proposal could be a transaction tax on both bricks-and-mortar and online retailers.

B&Q is putting together a working group to address the issue.

Comments

Published prior to March 2014
By neil
The government has introduced new legislation coming into effect at the end of this year, which is going to control on line betting and all the taxes those operators are avoiding. The Treasury have introduced what they call point of consumption so that a punter placing a bet anywhere in the UK pays taxes based on UK rules as does the betting shop even if they are in some off shore tax haven such as the Cayman Islands.
I cannot really see why the same methodology cannot be applied to on line retail. Perhaps The Sun and the BRC can do some lobbying on that?
Published prior to March 2014
By Just a Thought
Do B&Q not benefit from the internet trade too? Maybe this isn't about taxing 'etail' at a higher rate but looking to reduce your own overheads at store level?

Perhaps you should remember that a number of these internet traders were born out of your, and other multi-nationals greed, thus, in turn, driving the small independent retailer to find other means of making a living!

I would suggest that a number of manufacturers who supplied the independents are now supplying the internet trade who, unlike you sir, remain loyal to their customer base.

As a by the way, do the sandwich vans to whom you rent space on your car parks pay the same level of taxation as those who run cafe's made from bricks and mortar?

So are you poacher or gamekeeper Ian? Just a thought?
Published prior to March 2014
By Rufus Hubble
I dont understand. Surely online retailers pay rent and rates as well !.
The difference being they're usually in an industrial estate, so the charges will be less. If they were on the high street they'd pay the same !.
Published prior to March 2014
By Neil
Good on you Ian and the BRC .
This is something that every trade association who represent retailers should be into, and their members should be supporting. Not only are these online retailers avoiding the rent and rates of prime locations but we hear of the likes of Amazon paying other taxes on profits and I wonder how much VAT is being avoided too? Of course, it is not just the big boys that need investigating; it is the small on line retailers too operating out of the back bedroom at home. Probably not even operating from premises that have permission for business let alone retail and I wonder how much of their income even gets declared for tax purposes? However, we should not just investigate "on line" retailers, also the markets that have evolved out of the Sunday car boot sale. These are not raising money for the local scout group anymore they are the grey economy that is starving the legitimate retailer and taking tax away from government coffers that is needed for spending on schools, hospitals and other services.
A smaller garden retailer based in the Midlands. If I can lend support to your investigations and outcome please let me know.

(Your email address will not be published)
4 + 8 =  
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

Latest reader comments

re: Latest update on Green Homes Grant and implications for homeowners and landlords

John Hart
After applying for a green homes how long will it take for a decision? thanks...

re: SX Rainproof Exterior Caulk

Wally
I need the exterior sx rain resistant caulk! Can't get it anywhere so please help! How can I order it? Need it yesterday...

re: BCT can replicate any material in a ceramic tile

Christina Tiritanou
Not sure if you can help as I require a tile which has the measurements of 6”x 6”? Thank you....

re: Latest update on Green Homes Grant and implications for homeowners and landlords

colin thompson
SarahVery clear and helpful information.Thanks...

Most read stories