HMRC reporting of 2024

[Freakzilla]

The only thing I'm bothered about now is if marketplaces will report sales data for legacy customers for 2024, and we won't know for over a year!

Originally Posted by murdered_by_ebay

it is much easier , they collect info and report all sellers where the info is complete , all other sellers are restricted from selling until they provide info

HMRC guidelines clearly state that marketplaces do not need to verify the data beyond industry standards

although on amazon anything is possible as they already demand more details than required by law , more than high street banks require

[murdered_by_ebay]

Originally Posted by Freakzilla

The only thing I'm bothered about now is if marketplaces will report sales data for legacy customers for 2024, and we won't know for over a year!

you can assume they will if NI has already been added

over year? they would need to report next month

[Freakzilla]

Yeah over a year, where marketplaces have a years grace period to report sellers who were registered before this year, they wouldn't supply the 2024 data until 2026. That's if they will supply the 2024, and not just the 2025 sales data for legacy sellers.

Originally Posted by murdered_by_ebay

you can assume they will if NI has already been added

over year? they would need to report next month

[murdered_by_ebay]

Originally Posted by Freakzilla

Yeah over a year, where marketplaces have a years grace period to report sellers who were registered before this year, they wouldn't supply the 2024 data until 2026. That's if they will supply the 2024, and not just the 2025 sales data for legacy sellers.

data is only supplied next year , grace period means that 2024 does not need to be reported

[dabuds420]

I do wonder what happens if we simply do not provide the data they ask for, will they still send it to HMRC as an incomplete form?

For example if they ask for NIN or tax number, but we don’t give them it.. they will pause or close our accounts, but will it be left at that? Or will they send the incomplete form to HMRC with our revenue details regardless.

What are your thoughts?

[degsey69]

If your account is temporarily suspended until a NI is given I expect they will not chase you to give one.

[murdered_by_ebay]

the account will be restricted if details are not provided

[dabuds420]

Yes I know this will happen, I’m more so wondering if you think they still submit the information they do have such as revenue, bank accounts linked for payouts e.t.c to HMRC even if I choose to ignore the form and let them lock my account.

Let me know your thoughts.

[murdered_by_ebay]

they can not provide incomplete information , these details are required and the new law imposes fines on providing incomplete details

[Freakzilla]

They can provide incomplete info, but will be find £100 for each sellers incomplete info.

Originally Posted by murdered_by_ebay

they can not provide incomplete information , these details are required and the new law imposes fines on providing incomplete details

[murdered_by_ebay]

ebay always do the minimum that is required , I would rather worry about amazon here

[dabuds420]

In my eyes they will submit info regardless of the fact that you haven’t completed the form with all details requested, which isn’t ideal

[Freakzilla]

Why's that? Amazon haven't even mentioned it anywhere yet.

Originally Posted by murdered_by_ebay

ebay always do the minimum that is required , I would rather worry about amazon here

[murdered_by_ebay]

Originally Posted by Freakzilla

Why's that? Amazon haven't even mentioned it anywhere yet.

amazon are known for demanding a lot more than required legally , I would not be surprised if they report everyone regardless of NI availability

[Freakzilla]

Of course they will, they will then have to pay the fine for each incomplete sellers data submitted

Originally Posted by murdered_by_ebay

amazon are known for demanding a lot more than required legally , I would not be surprised if they report everyone regardless of NI availability

[Freakzilla]

New Update From HMRC

https://www.gov.uk/guidance/reportin...ital-platforms

Extended time limits for due diligence on pre-existing sellers
When you first become a reporting platform operator, you have until the end of the second year to complete due diligence for pre-existing sellers, who are those who have been registered on your platform before you had to start reporting.

This gives you an extra year to collect and verify information for pre-existing sellers.

If you do this, you’ll need to add a reporting notification in the online reporting service to tell HMRC.

For example, if a platform operator becomes subject to the reporting rules on 1 July 2024, its first reportable period is 2024.

The date by which it must complete due diligence is:

31 December 2024 for sellers who registered on or after 1 July 2024
31 December 2025 for sellers who registered before 1 July 2024

When to report
The reporting rules started in the UK from 1 January 2024.

You must submit your report successfully to HMRC by 11:59pm on 31 January for the previous reporting period using the online reporting service. For example, you need to collect information for the year 1 January 2024 to 31 December 2024 and report it by 31 January 2025.

You must use the digital platform reporting XML schema and supporting documents to create your report for submission.

Large XML files may take up to 2 days to be checked after submission. Your report needs to pass our checks by 11:59pm on 31 January to be considered a successful submission, otherwise you may be charged a penalty for late reporting.

You also need to give a copy of any reported information to the seller by this deadline. This will help them if they have to fill in a tax return.

I'm hoping this means that for sellers registered before July this year only our 2025 data will be reported to HMRC in Jan 26 and none of our 2024 sales will be reported.

Thoughts?

[james_112233]

Originally Posted by Freakzilla

New Update From HMRC

https://www.gov.uk/guidance/reportin...ital-platforms

Extended time limits for due diligence on pre-existing sellers
When you first become a reporting platform operator, you have until the end of the second year to complete due diligence for pre-existing sellers, who are those who have been registered on your platform before you had to start reporting.

This gives you an extra year to collect and verify information for pre-existing sellers.

If you do this, you’ll need to add a reporting notification in the online reporting service to tell HMRC.

For example, if a platform operator becomes subject to the reporting rules on 1 July 2024, its first reportable period is 2024.

The date by which it must complete due diligence is:

31 December 2024 for sellers who registered on or after 1 July 2024
31 December 2025 for sellers who registered before 1 July 2024

When to report
The reporting rules started in the UK from 1 January 2024.

You must submit your report successfully to HMRC by 11:59pm on 31 January for the previous reporting period using the online reporting service. For example, you need to collect information for the year 1 January 2024 to 31 December 2024 and report it by 31 January 2025.

You must use the digital platform reporting XML schema and supporting documents to create your report for submission.

Large XML files may take up to 2 days to be checked after submission. Your report needs to pass our checks by 11:59pm on 31 January to be considered a successful submission, otherwise you may be charged a penalty for late reporting.

You also need to give a copy of any reported information to the seller by this deadline. This will help them if they have to fill in a tax return.

I'm hoping this means that for sellers registered before July this year only our 2025 data will be reported to HMRC in Jan 26 and none of our 2024 sales will be reported.

Thoughts?

Agreed, it does appear that is the case.

So everyone that said this initially were correct after all, legacy sellers sales data are being reported in Jan 26.

Is this truly the end of stealth as we know it then ?

[ebabe]

So does that mean all of us sellers who created an account before 1 July 2024, we have another year (give or take) before eBay request tax ID?? Or eBay could request at anytime this year (2025) a Tax id #...for sellers who registered before 1 July 2024

[murdered_by_ebay]

most likely they will request in spring/summer and will restrict everyone who did not supply just before september

[dproberts]

Originally Posted by murdered_by_ebay

most likely they will request in spring/summer and will restrict everyone who did not supply just before september

I can confirm that they started to do this. Received a request to provide NI from e&ay. So far they didn't restricted account in any way but I suppose if NI not provided they will soon.
Also being a legacy seller, I can confirm they didn't report in Jan 2025 meaning most likely the report for legacy sellers will be in Jan 2026

[BeachedHead]

This seems to be the case, as eBay did not release the 'what we have sent to HMRC' document for any of my legacy accounts.

I did get this document on an account I purposely made last year to gather intelligence.

They are definitely going after Private Accounts more intensely than Business ones, I wonder if the HMRC see business accounts, as being more exposed visually, sp possibly not where the so called 'hidden money' is going and not where their efforts should be directly at immediately.

(obviously the hidden money is going to billionaires offshore accounts but they don't want to upset the wealthy so go after the working man, as per usual)

[MeToYou]

Read lots of sellers are being asked for NI now (March). So are people thinking legacy users (pre 2024) are not going to be reported if over 30 items in 2024 ? Mine comes to about 31 items and £1900 which is highly annoying as I didn't realise it went over until it was too late. I stopped selling in October when I realised.

Everywhere I read said all of 2024 are going to be reported, but as yet I have no sales report in my sellers dashboard and I have not yet inputted my NI.

I have a horrible feeling this year grace for legacy just means Ebay has longer to get things sorted for legacy and our 2024 data will still be sent once they have done all new ones. I guess they just don't want to overload their systems, I am not lucky enough for it to be 2025 onwards only. In fact, I am positive, as so many legacy are now being asked for the NI, so seems to me like they got given a bit longer to compile legacy and yet still all of 2024 will be submitted.

Given the UK HMRC uses April to April but the other 30+ countries signed up to this new digital sales act use full years, I have no idea whether HMRC will use all 12 months or just April 24 to April 25.

We need some kind of plugin that warns us when we get near the thresholds.