In July 2021, the UK government consulted on the implementation of the OECD Model Reporting Rules for Digital Platforms, rules which require digital platforms to report the details and income of sellers on their platform to both sellers and the tax authority to help assist taxpayers and to detect and tackle tax evasion.

Following last year’s consultation the Government has now published draft Regulations to implement these rules. The proposed new rules will require UK platform operators to collect, verify and report certain details of sellers who work on their platform to HMRC, and to provide a copy of the reported information to sellers. HMRC will have the right to exchange the information with other tax authorities and say they will use it to detect and tackle any non-compliance by sellers. HMRC also assert that the information given to sellers will help them to comply and complete their tax returns correctly.

The draft Regulations set out further details of:

• the actions that digital platforms will be required to take to comply with the rules; and
• the penalties for failing to comply with the regulations and the appeals process.

The draft Regulations may be of interest to:

• digital platforms which facilitate the provision of services, sales of goods or the rental of property or transport; and
• organisations and bodies that represent digital platforms or their advisers.

The Government is seeking technical feedback on the draft Regulations to try to ensure they operate as the Government intended and to identify any areas which need further clarification in more detailed guidance. HMRC says that it is happy to have meetings to discuss technical concerns raised by the draft Regulations.

Responses and requests for meetings should be sent to eoi.policy@hmrc.gov.uk by 13 December 2022.

The final Regulations are expected to be made in early 2023 to come into force on 1 January 2024. To access the consultation, click here.