Small Businesses: VAT Threshold

Lord Leigh of Hurley Excerpts

Thursday 5th March 2026 Lords Chamber

[Lord Livermore (Lab)]

Yes, absolutely, the Government are very aware of the points that my noble friend raises. HMRC has recently engaged in increased enforcement activity around those exact points.

[Lord Leigh of Hurley (Con)]

The Minister will be aware of the successful campaign that Retailers Against VAT Abuse Schemes and I ran to ensure that online marketplaces are required to collect VAT on certain transactions involving non-UK established sellers. The problem is that the current system has been exploited by proxy directors, proxy companies and artificial fragmentation. The chairman of the British Independent Retailers Association has written to the Exchequer Secretary to the Treasury to ask for urgent consultation on this issue, which is probably costing HM Treasury £700 million a year. Can the Minister use his influence in HM Treasury to ensure that urgent consultation takes place immediately with the retailers who signed that letter?

[Lord Livermore (Lab)]

Yes, I am grateful to the noble Lord for his campaigning work and raising this with me on a number of occasions. He knows that we are reviewing the online marketplace rules established under the previous Government. As part of that review, those consultations will take place. I will bring it to the attention of my colleague, the Exchequer Secretary to the Treasury, to make sure that he consults with the businesses that the noble Lord mentioned.