HM Revenue & Customs (HMRC) has published new guidance on the penalties digital platforms could face if they don’t report sellers’ tax information. Released on 16 October 2026, it sets out fines of up to £5,000 for missed reporting duties. Platforms that keep failing can face further daily penalties.
The new HMRC factsheet CC/FS98 explains how the penalties apply when a platform fails to collect, check or report the required seller information.
The reporting rules have been in place since January 2024. This update doesn’t create a new tax or penalty law. It simply clarifies how HMRC enforces existing rules.
What Penalties Can HMRC Charge Digital Platforms?
The penalty depends on the type of reporting failure. HMRC can charge:
- Up to £5,000 for missing the deadline for the annual report
- Up to £5,000 for failing to give sellers the required information
- Up to £5,000 for ignoring an HMRC information notice or not keeping the required records
- Up to £1,000 for failing to tell HMRC about the platform’s reporting or excluded status
- Up to £100 per seller for skipping required checks or sending inaccurate seller information, where the penalty conditions apply
If a failure carries on for 30 days after the first penalty, HMRC may add further penalties of up to £600 per day until the operator complies.
Those figures are maximums, not fixed charges. HMRC looks at the circumstances of each case and may accept a reasonable excuse. Operators can also appeal, and anyone facing a wider HMRC compliance check or investigation should consider specialist support early.
Which Digital Platforms Must Report Seller Information?
The rules cover platforms that connect customers with sellers of goods, services or property rentals, where the reporting conditions are met. That includes online marketplaces, accommodation booking sites and apps used by freelancers or delivery workers.
Platform operators must collect and verify details such as sellers’ names, addresses, tax identification numbers and payment information. They must also report transaction totals and other required details to HMRC.
Hiring a third-party reporting service doesn’t pass the responsibility on. The platform operator is still accountable for getting the information right.
What Does This Mean for Online Sellers and Landlords?
The penalties mainly hit platform operators. But the information those platforms collect can affect online sellers, self-employed freelancers and landlords too. HMRC can use platform reports to check whether people and businesses have declared their taxable income correctly.
That said, selling your own belongings online doesn’t automatically create a tax bill. Whether you owe tax depends on the type of activity and your circumstances.
If you earn money through a platform, review your income records and make sure you report anything taxable through your Self-Assessment return.
What Is the Next Reporting Deadline?
The next annual reporting deadline is 31 January 2027. It covers the 2026 calendar year.
Operators should check seller details, complete verification checks, fix any reporting errors and get their reports ready before then. They must also give reportable sellers the required information by the same date, supported by accurate bookkeeping throughout the year.
How Can Lanop Help?
HMRC’s latest guidance shows how much accurate reporting and reliable financial records matter.
Lanop’s accounting and tax advisory team can help you understand your reporting duties, review your financial records and deal with tax compliance concerns as part of wider tax planning.
If you run a digital business or earn income through an online platform, Lanop can help you understand your tax responsibilities and prepare for HMRC requirements.
