HomeInsightsGovernment delays commencement of tax reporting rules for digital platforms in the UK

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In July 2021, the Government consulted on the implementation of the OECD Model Reporting Rules for Digital Platforms, which require digital platforms to report details of the income of sellers on their platform to the tax authority and to the sellers.

Following the consultation, the Government has decided that the new rules will start from 1 January 2024.

The Government said that this is to give platforms and their advisors time to prepare for the implementation of the new rules, with collection of information starting from January 2024 and submission of the first reports due by the end of January 2025.

HMRC is currently considering the many comments and issues raised by consultation respondents. It is aiming to publish the Government’s response to the consultation, draft regulations (giving details of the new rules), and an update on interactions with EU rules, at the next legislation day in summer 2022.

HMRC says that it will also be engaging with platforms and their advisors before the new rules come into effect to make sure they are implemented proportionately and effectively. To read HMRC Agent Update Issue 96, click here.

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