Penalties for online marketplace operators

HMRC has published new guidance explaining the penalties that digital platform operators may face for failing to meet their tax reporting obligations. The guidance, published on 16 October 2026, clarifies how the existing rules for digital platform operators apply.

The rules cover websites and apps that connect sellers with customers to supply goods or services and can determine the amounts paid to sellers. Operators may need to register with HMRC, carry out due diligence and report information about sellers annually.

Penalties include:

• Late or missing reports: up to £5,000 for failing to submit required information to HMRC or provide it to reportable sellers by the deadline.
• Continued non-compliance: further penalties of up to £600 a day if an obligation remains outstanding 30 days after the initial penalty is charged.
• Inaccurate reports: up to £100 for each seller whose information is inaccurate or incomplete in specified circumstances, including where reasonable care has not been taken.
• Record-keeping failures: up to £5,000, while failure to notify HMRC of reporting status can attract a penalty of up to £1,000.
• Due diligence failures: up to £100 for each seller concerned.

Anyone running online platforms should ensure their registration, record-keeping and reporting procedures meet the necessary requirements.