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Internet companies face HMRC tax crackdown

The Cloud Computing experts

Internet companies face HMRC tax crackdown

Internet companies may have to provide further information to the HM Revenue on customers that sell goods and services online.

The HMRC wants to target individuals who fail to declare any money they make online or businesses that have failed to register for tax. According to the organisation, this hidden economy could equate to around £5.9bn each year in tax.

HMRCNo specific firms have been named so far, but sellers on advertising sites such as Gumtree, Airbnb and eBay could be among those targeted.

The HMRC stated that it would not target individuals that sold personal possessions online, only businesses that have failed to pay the tax owed.

“Data can be particularly powerful when it is collected from third parties who facilitate trade, either between businesses, or between businesses and consumers,” stated the HMRC consultation document.

“Effective tackling of the hidden economy will ensure a level playing field between those businesses and individuals who comply with their tax obligations and those that do not,” the consultation said. Those who were tax compliant would see little or no impact.