HMRC has introduced new rules for the reporting requirements of digital platforms from 1 January 2024.
What does this mean for me?
Well digital platforms will now be required to provide HMRC with the details of the individuals and/or businesses who sell on the platforms. These details will include: Name, Address, Date of Birth, Bank Account etc. Essentially everything that you provide to the platform to be able to sell or receive an income.
How does this affect me?
If you are already correctly declaring any income (through self-assessment) that you receive from a digital platform, then the changes will not affect you.
Should you be disposing of unwanted Christmas gifts or clearing space in your wardrobe, then these changes will not affect you.
However, the changes in reporting requirements are being done by HMRC to specifically catch those who are not correctly reporting their income and with the bank account details that HMRC will receive, they will know exactly how much the sellers will have received.
What is a digital platform?
A digital platform is an online site that allows those wishing to sell goods or services to connect with those wishing to purchase the goods or services, also known as an online marketplace.
Amazon, eBay and Etsy would probably be the most well known of these however, some people may not know that these changes also include sites such as:
Airbnb, Gumtree, Facebook Marketplace, Vinted, Holiday lettings, Hoseasons etc. Essentially every online platform where you would advertise goods or services…