MEP welcomes loophole closure

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THE closure of a tax loophole that has affected small businesses in Northumberland has been welcomed by a North East MEP.

From April 1 next year, companies will no longer be able to avoid VAT by shipping goods from the Channel Islands.

Fiona Hall, who has campaigned for years for the law to be changed, said: “This is great news for Northumberland businesses.

“It is an issue I have repeatedly raised with Government ministers over the years and I am pleased to see them now taking decisive action.

“Sending goods to the Channel Islands to then ship them back to the UK to avoid VAT is a clear abuse of the rules and it costs jobs by squeezing small businesses.

“Only big companies have the infrastructure to take advantage of the loophole so it adds to their huge advantage over smaller firms.”