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Anyone selling used clothes on Vinted, renting out their home on Airbnb, or getting rid of old camera equipment on eBay is going to come under fresh scrutiny from the taxman, following a crackdown on income earned from online trading.
From 1 January, HM Revenue & Customs will require digital platforms to collect information on how much their users make.
Countless sellers who have never declared their income from these sites could soon be on HMRC’s radar and face the prospect of large bills, or even fines, if they do not adhere to the law.
Dawn Register, head of tax dispute resolution at accountancy firm BDO, says HMRC could already request the information from UK-based digital platforms on an ad hoc basis, “but the new rules, coming into force from January 2024, mean that this information will start to flow automatically – and globally”.
Websites in any countries that have signed up to rules set out by the Organisation for Economic Co-operation and Development (OECD), will collect information on UK-resident sellers and share that with HMRC.
Register says this means that if you are letting a holiday home abroad through a non-UK website, the data could make its way back to the authorities here.
What is changing?
Websites will have to collect data about sellers. For individuals, this will be their name, address, date of birth and national insurance number, plus what they have earned and paid in fees on the platform. If a property is being let, they will need its address. This information will not have to be shared with HMRC until the end of January 2025.
...more
From 1 January, HM Revenue & Customs will require digital platforms to collect information on how much their users make.
Countless sellers who have never declared their income from these sites could soon be on HMRC’s radar and face the prospect of large bills, or even fines, if they do not adhere to the law.
Dawn Register, head of tax dispute resolution at accountancy firm BDO, says HMRC could already request the information from UK-based digital platforms on an ad hoc basis, “but the new rules, coming into force from January 2024, mean that this information will start to flow automatically – and globally”.
Websites in any countries that have signed up to rules set out by the Organisation for Economic Co-operation and Development (OECD), will collect information on UK-resident sellers and share that with HMRC.
Register says this means that if you are letting a holiday home abroad through a non-UK website, the data could make its way back to the authorities here.
What is changing?
Websites will have to collect data about sellers. For individuals, this will be their name, address, date of birth and national insurance number, plus what they have earned and paid in fees on the platform. If a property is being let, they will need its address. This information will not have to be shared with HMRC until the end of January 2025.
...more
