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News – 19.12.24

Buzzacott advises Rose Street Partners on its investment in Kenwood Damp Proofing PLC

Discover how Buzzacott supported Rose Street Partners on its investment in Kenwood Damp Proofing PLC … Read more

Insight – 18.12.24

Start-up guide: Everything you need to know about Tronc schemes to set your new hospitality business up for success

One challenge for new hospitality businesses is the management of tips and service charges. … Read more

Upcoming event – 16.01.25

VAT on Private School fees training

This in-depth, interactive training seminar is designed to provide school administrators, bursars, finance officers, accountants, and trustees with tailored support and expert insights on the practical implementation of VAT. … Read more

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Spring Budget 2020: Digital Services tax

From 1 April 2020, the government will introduce a 2% Digital Services Tax (DST) on the revenues of search engines, social media services and online marketplaces which derive value from UK users.

Businesses will be liable to the DST when a 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 a group’s revenues exceed these thresholds, revenues derived from UK users will be taxed at a rate of 2% however there is an allowance of £25 million, which means a group’s first £25 million of revenues derived from UK users will not be subject to the DST.

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Shriya Dheir

+44 (0)20 7710 3126
DheirS@buzzacott.co.uk

If caught by the new regime, the DST will be reportable and payable under the UK Corporation Tax framework.

The government still believes the most sustainable long-term solution to the tax challenges arising from digitalisation is reform of the international corporate tax rules. The DST will be dis-applied once an appropriate international solution is in place.

Read more on the Budget here.

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