Amazon.co.uk pay ZERO tax in the UK. Why are people more annoyed about the bloke down the road maybe getting a benefit that he shouldn't than that. I don't understand.

Well, we all enjoy the goods at such a low price.

I didn't know that.

Amazon is my favourite online retailer. I might have to rethink that now as that pisses me off a lot.

Companies have to be based somewhere, but basing themselves where the tax is non existent puts them at an unfair advantage. At the very least as consumers we need transparency.

I bought a lot from Amazon over Christmas. I factored in the convenience, and the effect it would have on local shops and balanced it by shopping locally at other times. What I didn't consider, because I didn't know was that Amazon don't pay the taxes that the local independent bookshop down the road does.

Now I know I'll think twice before buying from Amazon.

So does that mean that a company that is based in the UK shouldn't be able to sell their product or service in France because if they did it would be screwing the French out of tax?

Don't be silly. Companies have to be based somewhere, and unless all companies are going to be prevented from ever trading with customers in other countries, this situation will always happen somewhere.

Emmmmm apple and amazon are not from a 'developing country'.
And 'foreign aid' is a complex, often misunderstood term - depending on the giver.
Please don't mix the two.

Was to me, I think. I think we should mix the 2. Companies avoid paying money to governments, the shortfall is made up via indirect taxation and in some cases, aid.

The company pays the VAT it collects to Govt and it pays NI and income tax to Govt on wages it pays in the UK and pay Business Rates on the buildings it occupies.

The idea of imposing taxes on firms' profits is outdated in my view because business is so international now. Consumption taxes like VAT, wealth taxes on property and Business rates are much easier to impose and less easy to avoid.

This isn't a new phenomenon. I worked for a firm 25 years ago that never paid UK tax. It quite legally avoided it by routing all its contracts and invoices via Switzerland even though the business was operating a large part of its business out of the UK.

They aren't doing anything illegal, but it is worth considering other retailers that do pay corporation tax in this country. That's if you care and I think it probably is worth caring as the uk relies on corporation tax.

You wouldn't be legally complicit if you paid a tradesman cash instead of by cheque or card. Cas is perfectly legal tender in the UK and the responsibility lies with the tradesperson not the client.

they're not doing anything illegal.

Their head office is not in the UK. Therefore their tax responsibilities are not in the UK. That's how business works.

Well yes sweet you're quite right - it's not the paying in cash that's the problem, but most people know the "cash" price is often cheaper (and I would guess a lot of people ask if paying in cash will be cheaper). By doing so, they are then contributing to the overall problem even if it's the tradesman actually committing the evasion.

Ah, thanks for the update re Jersey.

Paying cash to tradesmen is not of itself tax evasion - it just makes it easier for the tradesperson to commit tax evasion. I am not sure what, if any, responsibility the customer has to not pay in cash, or e.g. to only pay in cash if an invoice is given with a VAT registration number on it etc. Ultimately the tax evader is the tradesperson.

Though if they explicitly quote one price for cash and another price for cheques, I guess the customer might have some complicity that could lead to legal action - but I don't know.

Companies never pay 40% tax on their profits - corporation tax is at different rates and companies do lots of things to reduce tax bills!

Basically though Amazon's headquarters is on Luxembourg, so corporation tax is paid there. In the uk, Amazon are a service centre so don't pay corporation tax. They do however contribute via employee taxes, and a not insignificant employer National Insurance contribution.

This is the reason the govt lower corporation tax rates - to encourage businesses to leave headquarters in the uk. Is also why you hear about majorly successful companies like Barclays Bank paying effective tax rates of less than 5%.

Luxembourg dramatically cut corporation tax rates about 6-7 years ago I think to encourage companies to set up their headquarters there. Ireland did similarly actually.

If you have/had a window cleaner bibbity,how do/would you pay him/her?

Just asking.

Amazon sell all over Europe though don't they?

Why should they choose the UK for their head office if it makes no difference to the service they give and they can make more profit from another country? They are a business, that's what businesses do.

I don't really understand They're avoiding paying 40% on their profits?

I never pay tradesmen cash in hand.

My dh is self employed but in an industry where he couldn't ask for cash in hand, even if he was tempted to. Tonight we will be typing up invoices for all his employers.

I won't do it on principle.

Emmmmm apple and amazon are not from a 'developing country'.
And 'foreign aid' is a complex, often misunderstood term - depending on the giver.
Please don't mix the two.

Link re the vat loophole being closed:

www.independent.co.uk/news/uk/politics/budget-to-close-jerseys-hidden-mailorder-vat-loophole-2247764.html

The reasons are explained here

www.telegraph.co.uk/finance/comment/richardfletcher/8745314/Is-the-tax-trap-closing-on-Amazon-eBay-and-Google.html

The vat loophole of sending from jersey etc has already or is in the process of being closed I believe.

While we're on the subject of tax avoidance though - how many people here pay tradesmen etc cash in hand? Because that is proper tax evasion - not even avoidance....

www.mumsnet.com/Talk/_chat/1396755-I-cant-believe-these-people-are-claiming-benefits

I had similar thoughts this am.

Sorry those countries, not companies.

Wow, just wow.

Tax avoided by business in the developing world is about the same as the Foreign Aid sent to those companies.

We're all being really screwed by them.

Amazon dispatch their CDs and DVDs from Jersey, I think, presumably this has a lower VAT regime for music and film? I think play.com did the same.

There is no VAT on books, only e-books.

No idea about everything else they sell like toys, think they all come within the UK for VAT.

Yep - but depends on goods and place of supply. Sometimes it's another retailer selling via amazon

VAT appears on their invoices, doesn't it?