HMRC news and archive

Fashion re-sellers must report sales to tax authorities

Individuals engaged in online side businesses such as reselling fashion and accessories, can anticipate increased scrutiny from tax authorities, with platforms such as Vinted and eBay now obligated to collect and share transaction details with HMRC as of January 1st. These measures, aligned with international efforts led by the Organisation for...

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Business

UK clothing manufacturers fined 90,000 pounds for underpaying staff

UK-based garment factory owners have been forced to pay almost 90,000 pounds for non-payment of minimum wage, new data from HMRC shows. Since 2012, an average of 900 pounds has been paid out to 126 factory workers. The figures show that more than 1,350 pounds has been paid in wage arrears to 10 workers following HMRC investigations into the...

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Retail

International sellers who do not pay VAT banned from online marketplaces

International sellers on UK marketplaces including Amazon and eBay are being banned following a crackdown on non-payment of tax. According to the BBC, thousands of international sellers have failed to pay the correct VAT on items sold online in the UK. Sellers, who aim to sell goods ranging from beauty and fashion to household items, have been...

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Former BHS-owner Dominic Chappell arrested amid tax probe

London - The former owner of collapsed high street retailer British Home Stores (BHS), Dominic Chappell, has been arrested by HM Revenue & Customs following an investigation into unpaid taxes. Chappell was arrested earlier this month for failing to pay over 500,000 pounds in tax on profits made from BHS, reported the Sunday Times. The arrest...

Retail

Sports Direct staff suffered grim working conditions

New insights into near abominable staff working conditions at Sports Direct, one of Europe's largest retailers, has led to founder Mike Ashley facing renewed accountability for the company's failings. As the retail giant was being investigated over staff being remunerated below minimum wage, a legion of other stories have lead to one MP labeling...

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Business|UPDATE

Sports Direct pledges staff 10 million pound pay rise

After Mike Ashley's Sports Direct failure to pay its staff the minimum wage came to light following a series of investigations into the retailers working conditions was released, Ashley has stepped forward to rectify the situation by pledging a 10 million pound pay rise. The sportswear retailer has promised to increase pay by approximately 15...

Retail|UPDATE

HMRC launches review against airport stores who fail to pass on VAT savings

Airport stores who do not pass on VAT savings to customers will come under scrutiny as the government launches a review into the "simply unacceptable" practice. The review comes four months after an undercover investigation launched by the Independent found that airport stores in the UK where collecting millions of pounds in VAT discounts on...

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Mike Ashley's Sports Direct questioned by MPs following undercover probe

Sports Direct has found itself in hot water again as politicians push the HM Revenue and Customs to investigate wage claims at the sportswear retailer, following an undercover probe. A debate was held in the House of Commons yesterday, following an undercover expose launched by The Guardian last week, which claimed working practices at the...

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Monsoon Accessorize leads latest government’s minimum wage shame list

British highstreet retailer Monsoon Accessorize is on the top of the government’s latest name and shame list of companies which failed to pay their employees the national minimum wage. (NMW) The fashion retailer is said to owe 104,508 thousand pounds to 1,438 employees - over a quarter of its UK store employees - putting it first on the most...

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Business

Next slammed with 22.4 million pound tax bill

Next has been slapped with a 22.4 million pound tax bill after a court found the high street retailer guilty of using a tax avoidance scheme known as a rate-booster. The court stated that Next had diverted UK profits to foreign subsidiaries which would allow the company to claim tax relief on overseas profits. These schemes help companies avoid...

Fashion

Net-a-Porter accused of not paying enough tax

Luxury online retailer Net-a-Porter has become the latest company to be accused of tax dodging with Channel 4 News reporting that the e-tailer paid a fraction of the tax you would expect it to. Channel 4 News claimed that shopping firm raked in sales of 435 million pounds in the year to March2013, but posted a loss of 24.7 million pounds, which...

Fashion

Littlewoods awarded 1.2 billion pounds tax refund

Littlewoods, part of the multi-brand retail group owned by the billionaire Barclay brothers, has been awarded a 1.2 billion pounds tax refund, after a landmark High Court ruling sided with the home shopping retailer during a long running legal dispute concerning interest on overpaid VAT. On Friday, judge Justice Henderson ruled that the claims...