We are sharing this update from ACCA, our professional body, for the interest of clients and contacts. The content is (c) ACCA
What businesses need to know
HMRC has released guidance regarding new rules for online marketplaces that require them to report the details and income of sellers on their platforms. This initiative aligns with the OECD model’s reporting rules for digital platforms and took effect in the UK on 1 January 2024.
Key points
- Definition of digital platforms: These are apps or websites that connect sellers with customers for goods or services, including:
- taxi and private hire services
- food delivery
- freelance job platforms
- short-term accommodation rentals
- Reporting requirements:
- digital platform operators must collect and verify information from sellers.
- an annual report must be submitted to HMRC, covering the year ending 31 December 2024, with a submission deadline of 31 January 2025.
Guidance details
HMRC’s guidance includes:
- definition and scope: clarification on what constitutes a ‘digital platform’
- return obligations: who is required to make a return
- information collection: what data platform operators need to gather and report
- submission deadlines: important timelines for reporting
- penalties: consequences for non-compliance with the rules.
HMRC is also developing an online service for submitting these returns.
Seller guidance
Additionally, HMRC has provided guidance for sellers on digital platforms, detailing:
- why operators may request information
- what information might be needed from sellers
- Insights into the sellers’ tax obligations and whether their activities could be subject to tax.
For comprehensive details, both operators and sellers should refer to the full guidance: