Spring Statement 2018 Tech giants like Amazon, Google and Facebook targeted by Chancellor in tax crackdown
The Chancellor Philip Hammond wants to tax firms based on their revenue
BIG tech firms like Google, Facebook and Apple are set for a call from the tax man after today's Spring Statement.
In his speech the Chancellor Philip Hammond pledged to crackdown on firms by potentially taxing their revenues.
At the moment, tax is paid on profits which is a much smaller figure.
Google said it made sales - revenues - of £1billion in the UK in 2016 and a pre-tax profit of £149million.
It paid taxes of £38million but if the government taxed a proportion of those sales its bill would rise significantly.
In a consultation paper published today it said that reform would give it the right to tax firms based on profits, as well as how it would work across other countries.
Highlights from the Spring Statement 2018
TODAY Chancellor Philip Hammond updated the House of Commons on the health of the nation's economy. Here are the key points:
The economy is growing faster than expected - The Office for Budget Responsibility has upgraded its growth figures to 1.7 per cent in 2017 and 1.5 per cent this year – both higher than previously forecast in last November’s Budget.
Wages could rise above inflation - Inflation is forecast to fall this year, so by Autumn real incomes will be on the rise again.
Cut down on plastic waste - A consultation will be held to look into tackling Britain's huge plastic waste pile. This could mean more tax slapped on crisp packets or deposit returns schemes.
The end of the £50 note, 1p and 2p coins - A consultation has been launched to look into the future of cash and it could mean the end for some coins and notes.
Thousands more affordable homes - An extra £1.67billion for 27,000 affordable homes over the next five years and double the financial support for small house builders to £220million.
£80million boost for small businesses - Help for small businesses including bringing forward a rates revaluation.
Tax break for van drivers - Vehicle excise duty (VED) rates would be reviewed for commercial motors. Drivers who buy the “cleanest” new models are likely to be offered cheaper road tax rates in the future.
Here's how the Spring Statement affects you.
It comes just a few weeks after the government consultation closed on potential changes to the taxation of the digital economy.
The review, which was first announced in the Budget in September, was set up to tackle large technology firms who do not pay enough tax.
In the UK, Facebook and Amazon have already tweaked their tax structures to book more of their payments after George Osborne, the former Chancellor, first introduced a Google tax on overseas profits.
READ MORE ON SPRING STATEMENT 2018
Both France and German have said they want to see revenue taxes for digital firms and the European Commission is expected to announce its own proposals later this month.
The Organisation for Economic Co-operation and Development (OECD) has warned that this could lead to a "tax war" breaking out, if separate nations impose different policies.
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