Answers · UK 2025/26
What is a DAC7 report and who does it affect in the UK?
DAC7 is an EU-originated information-sharing directive that the UK has adopted in equivalent domestic legislation, requiring digital platform operators to collect and report seller income data to HMRC annually, which HMRC then shares with other tax authorities.
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What Is DAC7? DAC7 (EU Directive 2021/514) is an automatic information exchange framework that requires digital platform operators -- such as online marketplaces, rental platforms, and gig-economy apps -- to collect, verify, and report details of income earned by sellers using their platforms. Although the UK left the EU, HMRC introduced equivalent UK legislation (The Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023) taking effect from 1 January 2024, with the first reports due by 31 January 2025. Which Platforms Are Affected? Platform operators must report if they facilitate: - Sale of goods (e.g., Vinted, eBay, Etsy, Facebook Marketplace) - Rental of property or transport - Personal services (e.g., TaskRabbit, freelance marketplaces) - Rental of any mode of transport Platforms with no reportable sellers in a given year may still need to file a nil return. What Information Is Reported? For each reportable seller, platforms must collect and report: - Full name, address, date of birth, and national insurance or tax identification number - The platform account identifier - Total consideration received by quarter - Number of transactions - Any fees, commissions, or taxes withheld by the platform Who Is a 'Reportable Seller'? Generally, a seller is reportable if they complete 30 or more transactions in the year OR receive total consideration exceeding EUR 2,000 (approximately GBP 1,700 at recent rates). Occasional low-volume sellers below these thresholds are excluded from reporting, though platforms must still verify their status. Impact on Individual Sellers If your details are reported to HMRC, the data may prompt HMRC to check whether you have correctly declared that income on your Self Assessment return. In 2026/27 the GBP 1,000 trading allowance still applies -- if your gross platform income is GBP 1,000 or less, no tax is due and no return is needed solely for that income. Above GBP 1,000, you may owe income tax on the profit. HMRC Information Sharing HMRC automatically exchanges DAC7 data with tax authorities in jurisdictions that have signed up to the OECD Model Rules (the same framework), meaning overseas platforms selling to UK sellers, and UK sellers using overseas platforms, may both be captured.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.