eBay boss warns Labour that its planned online tax crackdown must not 'unfairly' hit small UK businesses

Healey is reportedly planning a Budget measure forcing online marketplaces to collect VAT for every seller turning over more than £90,000 a year, wherever they are based. Analysts put the potential yield at £1billion, with the proceeds earmarked to reduce business rates for high-street shops. Eve Williams, eBay UK's vice president and general manager, says any change must 'definitely protect small UK businesses'. eBay has already held talks with the Treasury.

Some foreign firms reportedly use shell companies to dodge existing VAT rules on overseas sales.

Williams backs forcing overseas sellers to meet their tax obligations so UK sellers get 'the fairest chance'.

She warns tight VAT and National Insurance thresholds are 'the things that actually stop growth'.