HMRC plans for Digital Platforms to report trading data of users – Consultation open
We recognise that the role of digital data collection for financial and fiscal management is here to stay – Making VAT Digital is now fully implemented across the UK for example.
This new consultation from HMRC which runs until December 13th, illustrates the way in which the UK tax authority also looks to benefit from the data that digital trading platforms will collect on seller’s using their platforms.
The consultation paper will be an important read not just for platform operators but also taxpayers and their advisers. The intention of the planned rules are succinctly put at the start of the document:
“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.”
With these rules due to apply from 1 January 2024 with reporting starting January 2025, there’s time to consider the wider implications for taxpayers but clearly, HMRC ‘s access to and use of wider digital systems to identify potential tax loss is not in doubt.
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