New rules came into force at the start of 2024, requiring digital platforms such as Airbnb, Vinted and eBay to routinely report the income their sellers are making.
The UK signed up to guidelines from the internal body, the Organisation for Economic Cooperation and Development (OECD) – the rules are part of a global directive to clamp down on tax evasion and require online selling platforms to collect and report seller information and income to HM Revenue & Customs (HMRC).
Digital platforms are now able to register to manage their reporting, in advance of the 31 January 2025 deadline for submitting their first returns.
Who is required to register?
Digital platform operators must register with HMRC by the 31 January 2025 reporting deadline, otherwise penalties may be applied.
You will need to register if you are a qualifying digital platform and one of the following applies:
- You reside in the UK;
- You are managed under UK laws; or
- Your business is managed in the UK.
You need to register to use the service to tell HMRC that you are either
- A reporting platform operator and will report; or
- An excluded platform operator and will not report.
Registering and managing your account
An online service has been launched to enable digital platform operators to register with HMRC. Click here for more details.
Following registration, your digital platform reporting account can be used to let HMRC know you are a reporting platform operator by adding a notification and submitting reports about sellers on your platform. Records should be kept of anything submitted to HMRC.
How M+A Partners can help
It is important to pre-empt any action HMRC may take as a result of the more comprehensive reporting requirements required from online sellers. If you are unsure of your tax position or reporting obligations, please get in touch with your usual M+A Partners contact or email us at enquiries@mapartners.co.uk
Further information on paying tax when selling goods or services online can be found here.