ASOS and Boohoo saw their share prices plummet following Philip Hammond’s announcement that he wanted to go after pureplay online retailers to ensure that they paid as much tax as their bricks and mortar retailing competitors. It has long been argued that those selling purely online enjoy a huge advantage over their store operating counterparts as they are able to employ fewer people and pay a lot less in business rates for their warehouse based operations. Added to this is the issue of ensuring that overseas online sellers taking UK orders pay, at the least, VAT or a similar sales tax. Hammond suggested that the EU’s discussions about creating a tax for online businesses could be something to consider.
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