Digital platform rules: new guidance ahead of first report deadline
Newsletter issue – September 2024
In four months' time, the first reports are due for compliance with the new Digital Platform Reporting rules.
The regime, introduced on 1 January this year, requires UK digital platforms to collect and report income information for sellers using their platforms.
The first reports must be submitted before the end of January 2025.
It's all connected to the fact that the UK has signed up to the Organisation for Economic Development (OECD) Model Reporting Rules for Digital Platforms.
In recent weeks, HMRC published guidance for the rules around online marketplaces.
It has clarified that, for example, if you only sell on a platform, the rules are not applicable to you. That's also the case for sole traders managing a platform or if you sell your goods or services directly through your own website or app.
According to HMRC: "If you manage or work within a digital platform in the UK, you may need to: collect and check information about sellers on the platform; report details about sellers to HMRC. If you need to report to HMRC, you'll need to use the digital platform reporting service."
In terms of explaining what counts as a 'digital platform', below is the verbatim definition from HMRC:
"Your app or website is a platform if both these apply:
- it connects sellers to customers to supply goods or services
- you know or can easily find out the amount paid to sellers for goods or services."
Among the examples of services that HMRC lists includes taxi and private hire; food delivery and finding freelance work.
