LITRG respond to the HMRC-HMT consultation on online platforms’ role in tax compliance

Released 08 June 2018

Developing tax literacy from an early age is essential to equip people for navigating the opportunities -and pitfalls -of the sharing/gig economies.

The Low Incomes Tax Reform Group (LITRG) has responded to the HMRC and HM Treasury consultation looking at online platforms’ role in ensuring tax compliance by their users. The consultation sought view on how online platforms could work with HMRC and taxpayers to help people who make money through the platforms understand and meet their tax obligations. The LITRG response comments on the use of online forums to communicate HMRC publications and other sources of help and the option of introducing a withholding tax. The response also highlights that there is an urgent need for the GOV.UK page on selling services online to be amended as this currently gives the erroneous impression that anyone making money in the gig economy does not need to complete a tax return until they earn over the personal allowance, whereas in fact anyone who is self-employed with profits above the £1,000 trading allowance needs to complete a tax return and is obliged to tell HMRC so that a self-assessment record can be set up.

View the submission at The role of online platforms in ensuring tax compliance by their users.

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