HMRC targeting online sellers – Accountancy Daily

14th May 2024

Danielle Ford, Partner and Head of Tax Disputes & Resolutions, has featured in Accountancy Daily, commenting on HMRC’s latest campaign targeting those who sell on online platforms and apps.

HMRC is intensifying efforts to ensure tax compliance among online sellers and content creators who use digital platforms such as eBay, Etsy, Airbnb, and Vinted for sales. This move comes as part of a broader initiative to crack down on unreported income from the rapidly growing online marketplace sector.

As of 1 January 2024, digital platforms must collate income details of sellers, with reporting due from January 2025. This requirement stems from the Model Reporting Rules for Digital Platforms, a global initiative spearheaded by the Organisation for Economic Co-operation and Development (OECD), which is aimed at increasing transparency and preventing tax evasion within the digital gig economy.

Despite HMRC’s move towards improving tax compliance for online sellers, the legislation being applied isn’t reflective of modern changes in employment, technology and expense requirements, and some legal precedents being applied date back to the 1980s.

Danielle says: “If you are required to complete tax filings, seeking professional advice is advised. It is particularly crucial as an expert will be able to advise on expenses, potential tax reliefs, and to guide you through the process.”

You can read the article in full on Accountancy Daily here.

Tax compliance for online sellers

We have previously commented on the tax obligations online sellers need to be aware of. In short, it’s best to be prepared and to keep detailed records of your sales and expenses.

For further guidance and advice on the content detailed above, please contact Danielle directly.

Danielle Ford

Partner, Head of Tax Disputes & Resolutions
+44 20 7969 5591
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