Draft regulations: The Platform Operators (Due Diligence and Reporting Requirements) Regulations

In 2021 the government consulted on the UK implementation of the Organisation for Economic Co-operation and Development’s (OECD’s) Model Reporting Rules for Digital Platforms.

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.

The summary of responses to the consultation published on 20 July 2022 said that the government will publish draft regulations to implement the new reporting rules.

The draft regulations set out further details of:

• the actions that digital platforms will be required to take to comply with the rules
• the penalties for failing to comply with the regulations and the appeals process

These draft regulations will be of interest to:

• digital platforms which facilitate the provision of services, sales of goods or the rental of property or transport
• organisations and bodies that represent digital platforms or their advisers

The government is seeking technical feedback on the draft regulations to ensure they operate as the government intended and to identify any areas which need further clarification in more detailed guidance. HMRC are happy to have meetings to discuss technical concerns raised by the draft regulations.

Please send responses and requests for meetings to eoi.policy@hmrc.gov.uk.

The final regulations are expected to be made in early 2023 to come into force on 1 January 2024.