The UK has signed up to the Organisation for Economic Development (OECD) model’s reporting rules for digital platforms. These rules started in the UK from 1 January 2024. 

In broad terms, a digital platform is an app or website that connects sellers to customers to supply goods or services. Examples of services include:  

• taxi and private hire; 
• food delivery; 
• finding freelance work; and 
• the letting of short-term accommodation. 

Under these rules, a digital platform operator must collect and check information from sellers and send an annual report to HMRC. The first report will cover the year to 31 December 2024. It must be submitted to HMRC by 31 January 2025.  

HMRC has published guidance on the reporting rules for digital platforms. This includes guidance on:  

• the meaning of ‘digital platform’; 
• who needs to make a return; 
• the information the operator should collect and report to HMRC; 
• the deadline for submitting a return; and 
• the penalties which may apply if the rules are broken.  

HMRC is continuing to develop the online service that will be used to submit the return.  

HMRC has also published guidance for sellers on digital platforms. This explains why a digital platform operator may ask them for information, and what information may be requested. It also includes guidance on the seller’s own tax position, for example, whether their activities are likely to amount to a trade.  

Further information 

• The Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023, SI 2023/817
• OECD’s Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy