UK HMRC Reporting - What do I need to know?
Starting 1 January 2024, online marketplaces like HURR are required by HM Revenue and Customs (HMRC) to collect and report personal details and annual rental and sales transactions for the previous calendar year, in respect of lenders and sellers that meet the reporting threshold.
UK lenders and sellers who make over the threshold of âŹ2000 (or around ÂŁ1700), or have more than 30 transactions in a calendar year, set by HMRC will be covered by reporting under these new rules. In order to meet these reporting requirements, HURR is required to collect and verify certain additional information for these lenders and sellers, and report it along with the sales data.
We will be required to file our first report in January 2025, for transactions completed during the calendar year 2024.
What information do we need to collect from you?
For individuals, we will request information such as:
- Your first and last name, and your date of birth
- Your primary residential address
- Your Tax Identification Number and country of issuance
For legal entities, we will request information such as:
- Legal name
- Primary business address
- Your Tax Identification Number and country of issuance
- Your Business Registration Number
HURR is also required to share the following transactional information:
- Total amount paid to the lender/seller during each quarter of the period. The total amount paid is your total payout amount, which accounts for the deduction of any fees.
- Total number of transactions that the total amount corresponds to during each quarter of the period.
- Total amount of fees withheld or charged by HURR during each quarter of the period.
How will you collect my information?
If you meet the criteria above, we will email you with a link to a form to fill in to provide your information. You must answer the questions provided and then submit your form before the deadline, to avoid any further action taken on your account.
Please ensure your tax information is up to date and accurate for reporting. If you later realise that you need to update your information you can get in touch with us at contact@hurrcollective.com.
The deadline for submission is 19th January 2025.
How will I know what data youâve reported?
A copy of your data will be provided to you once itâs been filed, so youâll know exactly what was sent.
How can I see a summary of all of my payouts?
To filter and export a summary of all of your payouts from Lending and Selling, see our FAQ linked here.
What are the consequences if I donât provide my information?
If you donât submit the information requested by the deadline we provide, we are legally obliged to take action. This may include pausing your payouts and/or deactivating your account until we receive and verify your data.
What if I cannot provide all of the information youâve requested?
You must provide as much information as possible. By submitting the form, you verify that your responses are accurate and complete.
Does this mean I have to pay tax on my sales?
If you do meet this threshold, this doesnât necessarily mean you need to pay tax on your sales. Only profits made from lending or trading second-hand items are potentially taxable.
However, you may still be required to submit a self-assessment tax return.
Everyoneâs situation is different, so it is worth keeping records of your finances (i.e. receipts and bank statements) just in case you need them at a later stage. If you have questions about your taxable income, it is best to consult an accountant or tax advisor for guidance.
You may also find these additional HMRC links useful:
Income Tax Detailed Information