New reporting rules for digital platforms
The government has announced new income reporting rules which will impact businesses and individuals that use or operate digital platforms for selling goods and services. What’s the full story?
HMRC is asking for responses to its recently launched consultation, Reporting rules for digital platforms. It’s part of an international initiative to require firms worldwide that operate digital platforms to report details of businesses and individuals that generate income through their sites, e.g. amounts paid, name, address, bank account number, etc. This will give HMRC another tool for checking the accuracy of accounts and tax returns.
The scope of the new regime is very wide and HMRC anticipates that it will apply to up to 5 million businesses and individuals either being required to report information or as the subject of such reports.
While the system will not be introduced until January 2023, HMRC is asking for those who might be affected to engage now in the process of creating the ground rules. The consultation period closes on 22 October 2021.
Related Topics
-
Tax relief for lending to your company
You can usually claim tax relief for money you borrow personally to lend to your company. It sounds straightforward but there are in fact a number of restrictions to trip you up. How do you secure the tax relief?
-
Who can't yet sign up for MTD IT?
Making Tax Digital for Income Tax (MTD IT) becomes mandatory from April 2026 for sole traders and landlords with qualifying income over £50,000. However, HMRC’s current guidance makes clear that not everyone can sign up yet. If you are preparing early, are you actually eligible?
-
Pay self-assessment tax