If you manage or work within a digital platform you may need to collect and check information about sellers on the platform and pass this on to HMRC. We have outlined what you need to know below, to work out if you need to report information to HMRC, what you need to report, and when.
Firstly, what is a digital platform?
A digital platform is a website, app or other online framework that connects buyers to a product or service
✓ an online marketplace allowing users to buy and sell goods from other traders
✓ a rental accommodation website allowing guest payments and which connects them to accommodation owners
✕ a platform that only advertises products or services or directs you to a third-party website to complete your purchase or booking
✕ a platform used by a business to sell their own products or services
Why are these changes being made?
HMRC have implemented these reporting requirements to tackle tax evasion and the underpayment of tax. They will cross-reference the data received in these reports against the information included within tax returns to ensure income is being reported accurately.
How and when do I need to register?
You need to register with HMRC if you operate a qualifying digital platform and one of the following applies:
You do not need to register if you manage a platform as a sole trader.
You need to register regardless of if you are going to report, or if you are exempt and therefore excluded from needing to report.
HMRC will charge penalties of up to £1,000 for not informing them of the above.
To register you need a government gateway user ID and password, then you can register online through HMRC.
Below is a link you can follow to complete your registration:
Register to carry out digital platform reporting – GOV.UK
You will also be required to give contact details for team members within the business who will be able to answer questions about the report.
Registration needs to happen before 31st January 2026 to cover the reporting period from 1st January 2025 to 31st December 2025.
What information do I need to report?
The following information needs to be reported for all sellers on the digital platform:
The following information needs to be reported for individual sellers:
The following information needs to be reported for Companies, Partnerships, Trusts or Charities:
You also need to give a copy of any reported information to the seller by this deadline, which will help them fill in a tax return.
When do you not need to report?
You do not need to report on any inactive sellers (those not paid for goods or services during the reporting period), however you will need to add in a notification in your report to HMRC to inform them this is the case.
Who does not need to report:
If you are on a pre-existing platform that already has sellers when you become required to report, HMRC are allowing an extended time limit to complete the due diligence checks.
You have until the end of the second year to report on these sellers, instead of the first calendar year, but you’ll need to add a reporting notification in the online reporting service to tell HMRC that you are using this extension.
For example, if a platform operator becomes subject to the reporting rules on 1 July 2024, its first reportable period is 2024.
The date by which it must complete due diligence is:
Do not worry, help is at hand!
Agents or external parties can register and file on your behalf, however this cannot be done through the agent logins, the individual/business logins will need to be used. If there are any errors, or the reporting is late, it is the digital platform operator’s responsibility to ensure all information is filed correctly and on time.
If you would like any further information or have any questions about this, please get in touch with us on 01872 267267 or contact@whyfield.co.uk.
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