HMRC red tape and Amazon delays are
THE UK Government is being urged to work with Amazon to tackle the scourge of online merchants been frozen out of their accounts by HMRC red tape.
The SNP have demanded ministers and the firm work together to come to a solution to problems and delays to VAT checks which have seen hundreds of small businesses selling goods on Amazon frozen out of their accounts and denied substantial sums.
HMRC requires that online retailers check that retailers are based in the UK so VAT can be applied.
But Amazon freezes the accounts of those under investigation, a process which can take weeks, leaving many denied the ability to withdraw money earned through sales.
Richard Thomson, the SNP’s business spokesperson, told The
National that UK Government red tape was “slowing business down”.
He said: “Delays in the processing of these crucial checks are preventing many small businesses from being able to operate, and even pay tax and VAT.
“With a cost of living crisis and a recession raging, it’s important the UK Government and Amazon do everything it can to empower businesses from being able to trade normally instead, this is an example of them slowing business down.
“The UK Government has a responsibility to support business and must work with Amazon to find a solution that will allow companies to continue to trade on Amazon while checks are undergone in the background.”
He said that action from ministers “could make the difference between small business owners being able to keep staff, pay bills, or even continue to exist”.
An Amazon spokesperson said: “To comply with VAT legislation