Digital marketplaces to report sellers’ incomes from 2023

6th September 2021 | News

HMRC has published a consultation that outlines plans to implement reporting rules for digital platforms first put forward by the Organisation for Economic Co-operation and Development (OECD).

In February 2020, the OECD consulted on proposed rules setting out how digital platforms should collect information about the income of sellers and report it to tax authorities.

Under the new rules, websites and applications based in the UK will be required to report sellers’ income arising in the previous calendar year to HMRC. The reporting deadline will be 31 January of the year following the calendar year.

HMRC stated that the new rules will improve international co-operation in regard to the exchange of information for tax purposes. They will also allow HMRC to access data from platforms based outside the UK quickly and efficiently, which should encourage compliance and increase the visibility of transactions.

The rules will also help taxpayers to get their tax right and will assist HMRC in detecting and tackling tax non-compliance.

HMRC’s consultation will close on 22 October 2021.

Internet links: GOV.UK

Williamson & Croft is a market leading accountancy, advisory and tax firm with particular specialisms in property, construction, retail, digital and creative, technology and professional services.

News

National Insurance Contributions and Tax on Dividends to Increase

The UK government has announced an extra tax to fund health and social care and to help the NHS recover from the COVID-19 Pandemic. Employees, employers, and the self-employed will all pay 1.25p more in the pound for National Insurance (NI) from April 2022. NI will...

Contact

0161 399 0121

York House, 20 York Street, Manchester, M2 3BB

0151 303 3112

Avenue HQ Liverpool, 17 Mann Island, Liverpool L3 1BP

Contact us

© Copyright 2020 Williamson & Croft LLP - Registered No OC402211