Comments are flooding in to our piece about how the Budget VAT and Income Tax ch
By Cidawson · October 29, 2026 · Curated by George's Blog
Comments are flooding in to our piece about how the Budget VAT and Income Tax changes will impact cash flow for marketplace sellers. Feel free to email me your thoughts!
James Rigg at Trojan Commerce (Part of the Trojan Group) said "Tackling sellers who dodge VAT is right. Honest retailers shouldn’t be undercut by those who don’t pay. But from October 2027, marketplaces will collect the VAT on UK businesses’ sales and pay it to HMRC, including for sellers like us who already pay every penny we owe. We’ll still pay VAT upfront on our stock and wait for HMRC to refund it. We estimate this could tie up millions of pounds of our cash, money that should go into keeping prices down and jobs secure. Businesses with a clean VAT record should keep accounting for their own VAT."
Eve Williams at eBay UK said "We are hugely supportive of the Chancellor's decision to help Britain’s side hustlers and start-ups by tripling the Trading Allowance. Backing the High Street is vital and we shouldn't overlook the significance of the UK’s ‘Hidden High Street’ of online entrepreneurs in fuelling growth. We therefore also welcome the Government’s proposed approach to VAT compliance for sales made via online marketplaces, including the protections for individual sellers, businesses selling used goods, and the decision to continue with the £90,000 VAT threshold. We look forward to working with HM Treasury and HMRC to implement these new rules."
Monica Ariño at Amazon said "Amazon welcomes the Government's decision to extend rules requiring online marketplaces to collect VAT from all sellers, regardless of where they are based. This is an important step towards closing a loophole exploited by bad actors and creating a level playing field for the thousands of UK small businesses that sell in our store. We look forward to continuing to work with HM Treasury and HMRC to make the changes effective, practical and fair."
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