Healey is set to force Amazon and eBay to collect VAT directly in a £1bn Budget crackdown on online marketplaces
John Healey and Andy Burnham share a pint. The IFS has warned Chancellor John Healey his 28 October Budget risks becoming a "work of fiction" without credible measures to plug a £35 billion spending gap.
Chancellor John Healey is preparing to require e-commerce platforms — including Amazon, eBay and Temu — to collect VAT directly from sellers at the point of sale, a measure forecast to generate up to £1bn. The crackdown targets foreign retailers, particularly Chinese sellers, who have been creating UK shell companies to avoid the 20 per cent VAT they owe. The proceeds are intended to pay for business rates relief for high street shops, honouring a commitment Andy Burnham made during his Makerfield by-election campaign.
Tens of thousands of bogus UK companies have been registered by Chinese nationals, with the fraudsters abandoning their accounts before tax bills land — a scam MPs warned could be costing £5.5bn a year.
Under the plan, marketplaces would only collect VAT for sellers turning over more than £90,000 annually, a threshold critics say is too high to close the loophole fully.
Tax expert Dan Neidle warned that 'unless that happens these Chinese sham companies will find just another way around the rules.'
