Traders are now facing a £1m tax bill after Customs ruled that sellers must be subjected to a 17.5% VAT charge.
Customs argued in a letter, in response to an inquiry from a North London Shop owner: ‘It is evident from various magic mushroom websites that you do not use it based on the amount required in a recipe, you use amounts based on what sort or “trip” you want.’
It is estimated that there are between 200 and 300 magic mushroom sellers in the UK, and many more trading online, the Belfast Telegraph reported.
MTD represents 'the single most significant change to the UK’s system of taxation in recent times', says Knill James partner Nick Rawson. So, how prepared are SMEs for digital tax reporting?
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Unincorporated businesses under the VAT threshold given an extra year to prepare before MTD becomes mandatory