New rules came into force yesterday in the UK that will require e-commerce platforms to pass information to HMRC on the income of sellers who use them.

The new measures will see HMRC gather the information on sellers of goods and services overseas before sharing it with the relevant foreign authorities in an international attempt to limit tax evasion. The regulations apply from 1 January 2024, while reporting will be required from January 2025.

They mark an implementation of the Organisation for Economic Co-operation and Development’s (OECD) ‘Model Rules for Reporting by Platform Operators’ with respect to Sellers in the Sharing and Gig Economy (MRDP) which the group has developed in talks with the UK and other nations over the last few years.

The government has said that the changes will affect “digital platforms in the UK that facilitate the provision of services or the sale of goods by UK or other taxpayers”.

UK taxpayers who sell goods or services on those platforms will also be affected, and the government notes that the platforms include those that provide services such as taxi hire and food delivery.

It notes that the new rules are not expected to have an impact on individuals who use digital platforms to purchase goods or services.

The rule not only provides a more consistent approach for OECD member countries but will also enable HMRC to quickly and efficiently exchange information with other tax authorities to access data from platforms based outside the UK.