UK HMRC has launched an open consultation on the draft Platform Operators (Due Diligence and Reporting Requirements) Regulations. As previously reported, new provisions were introduced as part of the Finance Act 2021 to enable the implementation of the OECD's Model Reporting Rules, requiring digital platforms to report information on the income of their sellers to HMRC. These requirements are established by the draft regulations, which are to enter into force on 1 January 2024.
---
Draft regulations: The Platform Operators (Due Diligence and Reporting Requirements) Regulations
Summary
This technical consultation seeks views on draft regulations to implement the Organisation for Economic Co-operation and Development's Model Reporting Rules for Digital Platforms.
This consultation closes at 11:45pm on 13 December 2022
Consultation description
In 2021 the government consulted on the UK implementation of the Organisation for Economic Co-operation and Development's (OECD's) Model Reporting Rules for Digital Platforms.
These 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 exchange the information with other tax authorities and will use it to detect and tackle any non-compliance by sellers. The information given to sellers will also help them to comply and complete their tax returns correctly.
The summary of responses to the consultation published on 20 July 2022 said that the government will publish draft regulations to implement the new reporting rules.
The draft regulations set out further details of:
- the actions that digital platforms will be required to take to comply with the rules
- the penalties for failing to comply with the regulations and the appeals process
These draft regulations will be of interest to:
- digital platforms which facilitate the provision of services, sales of goods or the rental of property or transport
- organisations and bodies that represent digital platforms or their advisers
The government is seeking technical feedback on the draft regulations to ensure they operate as the government intended and to identify any areas which need further clarification in more detailed guidance. HMRC are happy to have meetings to discuss technical concerns raised by the draft regulations.
Please send responses and requests for meetings to eoi.policy@hmrc.gov.uk.