If you operate a digital platform in the UK that connects buyers with sellers for goods or services and can track payments to those sellers— such as property letting platforms, gig economy platforms, online course platforms etc—the OECD Model Reporting Rules for Digital Platforms may affect you. These rules, implemented in the UK on 1 January 2024, are designed to:
● Help sellers on digital platforms comply with their tax obligations
● Assist tax authorities in identifying and addressing non-compliance
This article provides an overview of the requirements, due diligence obligations and penalties for businesses that fall under the scope of these rules and how they can simplify compliance.
Scope and definitions
As defined in 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, it is incorporated under UK laws or managed in the UK
If you meet these conditions, you are responsible for ensuring compliance with the reporting rules. For clarification on whether your platform or its sellers fall under the scope of these rules, refer to the HMRC guidance.
Key responsibilities for RPOs
As an RPO, you must:
1. Collect and verify seller information – including names, addresses, and tax identification numbers
2. Report seller details annually to HMRC – reports for the first reporting period (1 January 2024 to 31 December 2024) are due by 31 January 2025
Due diligence obligations
Under Regulation 3(1), RPOs must establish procedures to:
● Gather seller information
● Collect information about any property listed on their platform (if applicable)
● Verify the accuracy of this information
● Identify reportable sellers
While reporting for the first period is required by 31 January 2025, HMRC offers a one-year grace period to provide information on sellers who were already registered when your platform became an RPO. For detailed reporting guidelines, refer to the HMRC guidance.
Penalties for non-compliance
Failure to meet these obligations could result in significant 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
Simplifying compliance with Amiqus
Handling these obligations manually can be complex, but digital providers can make it easier. Amiqus, a leading provider of compliance solutions, simplifies due diligence and reporting requirements for your business.
How Amiqus helps
Fast and easy seller verification: Using advanced technology, Amiqus streamlines the collection and verification of seller information for individual sellers and entity sellers (such as companies)
Comprehensive KYC checks: The Amiqus 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
Accurate checks: Amiqus ensures that the seller verification is carried out to the highest standards so RPOs can have full confidence in their reporting
Be prepared for the 31 January 2025 deadline
Whether you need to onboard new sellers or verify existing ones, Amiqus can help you stay compliant.
Get started with Amiqus today
Don’t wait until the last minute to meet your reporting obligations. Schedule a quick chat with our team to discuss your requirements and implement streamlined processes for compliance.
This article was published by Amiqus as part of their advertising agreement with Today’s Conveyancer.
The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.
