UK HMRC published the Digital platform reporting XML schema and supporting documents 24 October 2024. The documents include XML schema and supporting documents and Sample XML files.
The UK is signed up to the Organisation for Economic Development (OECD) Model Reporting Rules for Digital Platforms. The reporting rules started in the UK from 1 January 2024.
If you manage or work within a digital platform in the UK, you may need to collect and check information about sellers on the platform and report details about sellers to HMRC.
If you need to report to HMRC, you’ll need to use the digital platform reporting service.
What qualifies as a digital platform
A digital platform is defined as an app or website that meets two key criteria: it connects sellers with customers to provide goods or services, and it either tracks or can easily determine the amount paid to sellers for these goods or services. Common examples of services offered through such platforms include taxi and private hire services, food delivery, freelance work sourcing, and short-term accommodation rentals.
However, these rules do not apply in certain cases. For instance, if you only sell on a platform, manage a platform as a sole trader, or sell goods or services directly through your own website or app, you are exempt from these platform-specific requirements.
Who needs to report
If you are a reporting platform operator, you will need to report information to HMRC. This includes any platform operator, except an excluded operator, where one of the following applies:
- you reside in the UK
- you are managed under UK laws
- you have a place of management in the UK
An excluded platform operator is one whose entire business model either:
- does not allow sellers to profit from received payments
- has no reportable sellers
You’ll need to use the digital platform reporting service to tell HMRC if you’re:
- a reporting platform operator
- an excluded platform operator
Who needs reporting
You are required to report on “reportable sellers,” which are sellers who both reside in the UK or another country that follows the rules and actively supply or are compensated for goods or services on the platform. However, certain low-risk seller categories are exempt from reporting. These include entity sellers, such as companies, that handle more than 2,000 property rentals annually on the platform, government entity sellers, entity sellers or affiliates whose shares are regularly traded on a stock exchange, and sellers who make fewer than 30 sales of goods and earn less than EUR 2,000 (approximately GBP 1,700) from those sales in a year.
When to report
You must submit your report to HMRC by 31 January for the previous reporting year. For instance, you are required to collect information for the period from 1 January 2024 to 31 December 2024 and submit the report by 31 January 2025. Additionally, you need to provide a copy of the reported information to the seller by this deadline, which will assist them in completing their tax return if necessary.
What to report
You are required to report all the information you collect, as outlined in the “What you need to collect” section. Additionally, you must report the following details if available: any other tax identification number (such as a VAT number) and where it was issued, the country the seller resides in, the total amount paid to the seller for the reporting year, the number of transactions for which the seller received payment, any fees, commissions, or taxes you have withheld or charged, and the bank account details to which amounts were paid. If the account details differ from the seller’s, you must provide the name of the account holder and other identifying information, such as their address and date of birth.
How to submit a report
You’ll need to register to use the online service to submit a report.
After you’ve registered, you’ll need to upload an XML file to the service to report seller information. An XML is a file format like PDF, CSV, or TXT. This is a digital file format for electronic reporting and exchanging information between tax authorities.
Download the latest digital platform reporting XML schema.
Penalties
Failure to comply with the rules may result in three types of penalties. First, there is a penalty of up to GBP 1,000 if you fail to notify HMRC of your status as a reporting or excluded platform operator. Second, if you do not meet the annual reporting deadline of 31 January, you could face an initial penalty of up to GBP 5,000, plus a continuing penalty of up to GBP 600 per day. Third, inaccuracies, incomplete information, or unverified seller records can result in a penalty of up to GBP 100 per record. If sellers do not cooperate in providing necessary information, you may need to consider limiting their access to your platform or preventing them from registering.
