News & Views

Jenna Cane

Online platforms’ role in ensuring tax compliance by their users

Sharing Economy UK and the CBI have submitted a joint response to the HMRC and HM Treasury consultation on the role of online platforms in ensuring tax compliance by their users. This followed a joint roundtable meeting held with members, the CBI, Sharing Economy UK, HMRC and HM Treasury.

Government is exploring how online platforms could work with HMRC and taxpayers to help people who make money through the platforms understand and meet their tax obligations.

We welcome the opportunity to provide comments as part of the call for evidence in the role of online platforms in ensuring tax compliance by users. The digital economy is enabling greater transparency of trading relationships through technology, providing opportunity for people to earn money and contribute tax.

Our response makes the following recommendations:

- HMRC should prepare a short online information pack with specific guidance for users of online platforms, with businesses willing to contribute ideas on what the guidance could include

- HMRC need to carefully consider the definitions used to scope the measure, including what constitutes an online platform and a user

- The scope of marketplaces covered and the extent of the measure need to be carefully balanced with risks of displacement, in particular for online stores and marketplaces

- The challenges arising from “multi-apping” should be considered when any proposal is being designed

The full response can be downloaded here