Skip to main content

Due diligence and reporting requirements regulations

Divider
What is the digital sales reporting legislation?

Digital platforms and online marketplaces in the UK, such as dealerauction.co.uk, are required to comply with the UK digital sales reporting legislation, implemented in the UK by The Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023. If you are a user of such platforms, depending on your yearly sales or number of sales transactions, you may need to provide your tax identification information to the platform operator.

For residents of the UK, the platform operator Dealer Auction Limited and all of its subsidiaries are legally required to report both your sales transactions and certain personal or business information to His Majesty’s Revenue and Customs (HMRC).

Dealer Auction will report this information should you meet either of the following thresholds within the calendar year:

  • Your total sales on the Dealer Auction platform are equal to or more than £1,740 after deducting fees and commissions or taxes
  • You complete 30 or more sales transactions on the Dealer Auction platform (cancelled transactions are not included in the calculation)

Your total sales for the year are calculated based on the full amount received for your sales transactions on any individual platform excluding:

  • Shipping amounts paid to the Dealer Auction platform in question
  • VAT collected and remitted by the Dealer Auction platform in question
  • VAT charged on fees
  • Amounts deducted by the Dealer Auction platform in question for fees, cancelled or deleted sales
  • Returns
Important

Please be aware that UK digital sales reporting requirements do not change your tax and reporting obligations. Per HMRC, “If you are just selling some unwanted items that have been laying around your home, such as the contents of a loft or garage, it is unlikely that you will have to pay tax.” You remain responsible for determining whether your dealerauction.co.uk sales are subject to tax and complying with all relevant reporting obligations that may arise from your activities on dealerauction.co.uk. We recommend you review this HMRC guide, reach out to HMRC or consult a tax advisor if you have any questions about your tax obligations.

Reporting to the HMRC

Starting January 2025, Dealer Auction will begin annually reporting to HMRC. Each January we will report for the previous year and provide a copy of the reported data for your review. Should you meet either of the thresholds described above, the following information will be shared with HMRC:

Individual sellers (including sole traders) Registered companies and partnerships
Full name Business or legal name
Primary address Primary address
  • National Insurance (NI) Number
  • Date of birth
  • Company Registration Number (CRN) for a registered company, Limited Partnership and Limited Liability Partnership
  • Unique Taxpayer Reference (UTR) for a General Partnership (Partnership)
VAT identification number, where applicable VAT identification number, where applicable
Total number of transactions and total amount paid or credited to the seller during each quarter of the calendar year, excluding*:

  • VAT collected and remitted by Dealer Auction
  • VAT charged on fees
  • Amounts deducted by dealerauction.co.uk for fees, cancelled or deleted orders
  • Returns

* Consequently, the amount Manheim reports may differ from the total amount of payments you actually received from Dealer Auction. 

 Total number of transactions and total amount paid or credited to the seller during each quarter of the calendar year, excluding*:

  • VAT collected and remitted Dealer Auction
  • VAT charged on fees
  • Amounts deducted by Cox Dealer Auction for fees, cancelled or deleted orders
  • Returns

* Consequently, the amount Manheim reports may differ from the total amount of payments you actually received from Dealer Auction.
Total of fees, commissions or taxes withheld or charged by the platform during each quarter of the calendar year Total of fees, commissions or taxes withheld or charged by the platform during each quarter of the calendar year
Number of the bank account to which sales proceeds were paid or credited Number of the bank account to which sales proceeds were paid or credited
Data protection

We protect your personal data through leading-edge technical and organisational security measures to minimise risks associated with data loss, misuse, unauthorised access and unauthorised disclosure and alteration.

To this end we use firewalls and data encryption, for example, as well as physical access restrictions for our data centres and authorisation controls for data access.

We also recommend you ensure a strong password on your dealerauction.co.uk account.

We’ll give you ongoing visibility into any information we collect and you can request a copy of the data we’ve collected at any point. You’re also able to update your preferences at any time. You can find further information on our data security in our User Privacy Notice.

Providing your tax identification information

Under the UK digital sales reporting legislation, dealerauction.co.uk is required to collect and report your tax identification information to HMRC. If your tax identification information is not yet stored in your Manheim.co.uk account and you’ve met either of the thresholds, you will receive an email asking you to provide the respective information.

The table below illustrates the specific tax identification information needed, including the format and guidance on where to find it:

> Individuals and Sole Proprietors Registered companies, Limited Partnership and Limited Liability Partnership General partnerships
Tax identifier National Insurance (NI) number Company Registration number (CRN) Unique Taxpayer Reference (UTR)
Format XX999999X Two prefix letters, six digits and ending in one suffix letter. A CRN consists of 8 numbers or 2 letters followed by 6 figures. The exact combination depends on the company structure and where it is incorporated. Limited companies incorporated in England & Wales are always assigned 8-number CRNs 9999999999 (10 digits)
Where can I find it
  • On your payslip
  • On your P60
  • On letters about your tax, pension or benefits
  • In the HMRC app
  • In the National Insurance section of your personal tax account
  • On your certificate of incorporation
  • On letters you’ve received from Companies House since incorporating
  • On the Companies House’s official register of incorporated businesses
  • HMRC App
  • Your SA800 – Self Assessment: Partnership Tax Return
How do I apply for one? For more details, please visit the Apply for a National Insurance number page on gov.uk Company registration numbers are assigned automatically when businesses incorporate. For more details, please visit the Self Assessment: register a partnership for Self Assessment (SA400) page on gov.uk

 

Tip

If you are required to do so but don’t provide the requisite information, your account may be subject to payout holds or selling blocks.

As a UK resident, when you sell over £1,740 or surpass 30 sales transactions within a calendar year on a single unique platform, Dealer Auction is obliged to report certain personal or business information to HMRC in accordance with the UK digital sales reporting legislation. Dealer Auction will notify you when you have crossed these thresholds. When prompted to do so, please provide Dealer Auction the requested tax identification information specific to you as a business or individual. Starting January 2025, the prior year’s information will be annually reported to HMRC each January and a copy of the reported data will be provided to you.

UK digital sales reporting requirements do not change your existing tax obligations or create new tax obligations for you. These thresholds only relate to whether Dealer Auction is required to report your data. This doesn’t change your tax obligations or necessarily mean that you must pay taxes on the amounts reported; per HMRC, “If you are just selling some unwanted items that have been laying around your home, such as the contents of a loft or garage, it is unlikely that you will have to pay tax.” Whether or which taxes are due because of your sales on Dealer Auction platforms depends on your total sales activity, which is not limited to Dealer Auction platforms.

Whether you are trading privately or commercially does not depend on reaching the values specified by the UK digital sales reporting legislation. The question of whether you are acting commercially or whether tax obligations result from your sales activity depends on your sales activity as a whole. If you are unsure if your selling activity on Dealer Auction qualifies as private or commercial or if you have further questions regarding your tax obligations, please review this HMRC guide, reach out to HMRC or consult a tax advisor.

Take us for a test drive.

Curious about what you see? Then why not try Dealer Auction for free for 30 days?