There are new changes to how digital platforms in the UK report information. If you run a platform that connects buyers with sellers, like a property-letting website or an e-commerce website, these changes might affect you. But don’t worry—we’ve broken it down into simple steps so you know exactly what’s required.
Not every platform will be impacted, and many businesses might not need to report at all. This article will help you understand if you need to comply, what’s expected and how you can make it easier to meet these new rules.
What are the rules about?
The Organisation for Economic Co-operation and Development (OECD) Model Reporting Rules implemented in the UK on 1st January 2024, aim to:
- Assist tax authorities in identifying and addressing non-compliance
- Help sellers using digital platforms meet their tax obligations
Who needs to report?
You’ll need to report information if you’re a Reporting Platform Operator, but what exactly does that mean? What counts as a platform or a platform operator? It can all feel a bit overwhelming, so here are some key definitions from the model rules:
A Platform is any software (such as a website, mobile app, or part of either) that connects sellers with users to provide services or sell goods.
A Platform Operator (PO) is an entity that contracts with sellers to make all or part of a platform available to them.
A Reporting Platform Operator (RPO) is any platform operator, except those classified as excluded platform operators, that meets one of the following criteria:
- Is a tax resident in the UK
- If it does not have tax residence, is incorporated under UK laws or managed in the UK
Still unsure? HMRC’s guidance can help clarify if you or your sellers fall under these rules.
Your key responsibilities
If you’re an RPO, here’s what you need to do:
Collect and verify seller information, including names, addresses, and tax identification numbers.
Report seller details annually to HMRC. For the first reporting period (1 January 2024 to 31 December 2024), submissions are due by 31 January 2025.
Your due diligence obligations
The rules also require RPOs to:
- Gather seller information
- Collect information about any property listed on their platform (if applicable)
- Verify the accuracy of this information
- Identify reportable sellers
If this sounds like a lot, remember the HMRC is offering a one-year grace period for reporting information about sellers who were already on your platform when these rules began. For detailed reporting guidelines, refer to the HMRC guidance.
What happens if you don’t comply?
Non-compliance can lead to penalties, including:
- Up to £1,000 for failing to inform HMRC of your platform’s reporting status
- Up to £5,000, plus an additional £600 per day, for missing the annual reporting deadline
- Up to £100 per record for inaccurate, incomplete or unverified seller information
It’s important to get it right the first time, and there are tools available to help you make the process easier.
Simplifying compliance with Amiqus
Handling these obligations manually can be complex, time-consuming and stressful. That’s where Amiqus comes in. Our reliable, efficient platform allows you to meet all your due diligence and reporting requirements.
Here’s how Amiqus makes compliance easy:
Fast and easy seller verification: Using advanced technology, Amiqus streamlines the collection and verification of sellers in just three simple steps.
Comprehensive KYC checks: Our platform offers a range of checks to ensure thorough due diligence, such as :
- Photo ID verification
- Identity reports, including address verification
- Company lookup via Companies House
- PEPs, sanctions, and adverse media checks for individuals and organisations
Reliable reporting: All checks meet the highest standards so you can have full confidence in your compliance.
Don’t wait until the deadline
The first reporting deadline is 31 January 2025. Whether you’re onboarding new sellers or verifying existing ones, Amiqus is here to help. Get started today. Schedule a quick chat with our team to discuss your requirements and implement an all-in-one solution for compliance.
Further reading on reporting rules for digital platforms
For more information on the rules, take a look at:
- Detailed HMRC guidance at ‘Reporting rules for digital platforms guidance’ in the HMRC internal manual
