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Aug 21, 2024 · Social media content creators (who can also be influencers): These are normally individuals who create and share content intended to educate or entertain an audience across social media platforms. The internet offers several avenues for content creation, including writing blogs, sharing newsletters, uploading videos and drafting web copy.
- Who Is Likely to Be Affected
- General Description of The Measure
- Policy Objective
- Background to The Measure
- Detailed Proposal
- Further Advice
Large multi-national enterprises with revenue derived from the provision of a social media service, a search engine or an online marketplace to UK users.
From 1 April 2020, the government will introduce a new 2% tax on the revenues of search engines, social media services and online marketplaces which derive value from UK users.
The application of the current corporate tax rules to businesses operating in the digital economy has led to a misalignment between the place where profits are taxed and the place where value is created. Many of these digital businesses derive value from their interaction and engagement with a user base. Under the current international tax framewor...
The announcement of the Digital Services Tax in Budget 2018 was followed by a consultation which closed in February 2019. Draft legislation was published in July 2019 followed by a consultation which closed in September 2019.
Operative date
The Digital Services Tax will apply to revenue earned from 1 April 2020.
Current law
This is new legislation and there is no current law in this area.
Proposed revisions
Legislation will be introduced to establish a Digital Services Tax. The Digital Services Tax will apply to a group’s businesses that provide a social media service, search engine or an online marketplace to UK users. These businesses will be liable to Digital Services Tax when the group’s worldwide revenues from these digital activities are more than £500 million and more than £25 million of these revenues are derived from UK users. If the group’s revenues exceed these thresholds, its revenue...
If you have any questions about this change, contact the Digital Services Tax team by email: dst.mailbox@hmrc.gov.uk
Jan 28, 2016 · Jeremy Corbyn, 27 January 2016. Google and HMRC, the tax authority, have agreed that the company will pay an additional £130 million tax for the last decade. Several experts have said that this, along with the tax it has paid, represents only around 3-5% of the profits that they think Google should be taxed on.
Jul 11, 2019 · Legislation will be introduced in Finance Bill 2019-20 to establish a Digital Services Tax. The Digital Services Tax will apply to businesses that provide a social media platform, search engine or ...
- Large multi-national enterprises with revenue derived from the provision of a social media platform, a search engine or an online marketplace (‘in...
- From April 2020, the government will introduce a new 2% tax on the revenues of search engines, social media platforms and online marketplaces which...
- The application of the current corporate tax rules to businesses operating in the digital economy has led to a misalignment between the place where...
- The announcement of the Digital Services Tax in Budget 2018 was followed by a consultation which closed in February 2019.
- Operative dateThe Digital Services Tax will apply to revenue earned from 1 April 2020.Current lawThis is new legislation and there is no current la...
- The measure will be monitored through information collected from receipts.
- If you have any questions about this change, contact the Digital Services Tax team by email: dst.mailbox@hmrc.gov.uk.
Dec 19, 2014 · The place of supply of digital services. If you are a business making supplies of digital services to UK consumers, those supplies are liable to UK VAT. If you make supplies of digital services to ...
Feb 17, 2023 · HM Revenue & Customs is writing to thousands of online traders, gamers and social media “influencers” it suspects have not paid the right tax for money earned online. As part of the UK tax ...
May 17, 2024 · Once over this amount, your earnings will be subject to income tax at the three income tax bands: Basic rate tax at 20%. You fall into this bracket where your overall earnings are between £12,571 – £50,270. Higher rate tax at 40%. You fall into this bracket where your overall earnings are between £50,271 – £125,140.
People also ask
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