HMRC HMT consultation outcome: Online platforms’ role in ensuring tax compliance
Released 7 November 2018
HMRC and HM Treasury have published outcome details for the consultation on the role of online platforms in ensuring tax compliance by their users.
The role of online platforms in ensuring tax compliance by their users consultation, which ran from 13 March 2018 to 8 June 2018, sought views 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 responses suggested that HMRC guidance could be improved for those using online platforms and the Government intends to work with a variety of stakeholders, including platforms and users, to ensure the guidance meets their needs, following recommendations in the recent Office of Tax Simplification report on guidance. Additionally, HMRC wants to ensure that all platforms who operate in the UK face the same obligations relating to providing data and the Government intends to explore how it can most effectively access data about users and opportunities for technological solutions enabling users to share their own data directly with HMRC. The Government intends to improve the help and support that is available to users of online platforms by working with platforms and software providers to exploit opportunities to make that experience simpler. Regarding OTS proposals for a withholding system for those who work through platforms in the gig economy (they refer to this group as ‘platform workers’), HMRC will continue to consider the arguments for change made by the OTS as part of its wider work to ensure that, where people have tax obligations because of these new opportunities, it is as easy as possible for them to comply.