Penalties for online marketplace operators

by Aitch, posted in HMRC notices

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.

Source:HM Revenue & Customs | 26-10-2026
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Aitch
I'm Aitch, the Founder and CEO of CIGMA Accounting Ltd. As a Chartered Management Accountant and as a CIMA member, I've spent more than 16 years helping businesses, entrepreneurs, landlords, and individuals with tax planning, accounting, and HMRC compliance. As a chartered accountant in London, I'm passionate about making complex tax matters easier to understand and helping clients make confident financial decisions. Over the years, I've advised start-ups, SMEs, established companies, and high-net-worth individuals across a wide range of tax and accounting matters. My expertise includes Corporation Tax, Self-Assessment, Capital Gains Tax, Inheritance Tax planning, R&D tax relief, capital allowances, international tax, and resolving complex HMRC compliance issues. Whether clients need a business accountant, tax accountant, or strategic tax advisor, my focus is always on delivering practical advice that creates long-term value. One of my specialist areas is Making Tax Digital (MTD). I've worked extensively with businesses preparing HMRC's digital reporting requirements, helping them move to cloud accounting, improve financial processes, and adopt technology that makes compliance more efficient. I regularly speak at Making Tax Digital roadshows, industry events, and educational sessions in collaboration with Zoho Books, sharing practical insights into digital accounting, tax legislation, and the future of the profession. Many business owners looking for the best accounting firm in London are not simply searching for an accountant they're looking for trusted advice, responsive support, and long-term value. That's the approach I've taken in building CIGMA Accounting. My team and I work closely with businesses across London and the UK, providing accounting services, tax advisory, bookkeeping, payroll, VAT, company accounts, and strategic tax planning tailored to each client's goals. Through this website, I share practical guidance on UK taxation, Making Tax Digital, HMRC updates, Corporation Tax, Self-Assessment, and business finance. My aim is to provide reliable, straightforward information that helps business owners understand changing regulations, reduce compliance risks, and make informed financial decisions with confidence.
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