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Why do I need to provide my Tax Details

 

Due to new MRDP regulations, all Space Owners are required to provide their tax details.

 

MRDP stands for Model Rules for Reporting on Digital Platform Operators. It is a set of regulations that requires online platforms to report information about sellers who operate on their platforms to tax authorities.

 

Who is affected by MRDP?

• The MRDP regulations apply to all sellers on the platform, regardless of private or commercial entity.

 

What are the key requirements of MRDP?

• Some of the key requirements of MRDP include:
  • Providing tax details such as National Insurance number
  • Providing accurate personal details matching their tax details
  • Providing tax details that match the YPS account holder

 

How is compliance with MRDP monitored and enforced?

• Compliance with MRDP is monitored and enforced by tax authorities such as HMRC as well as our
• Finance and Legal departments.

 

What are the penalties for non-compliance with MRDP?

• Penalties for non-compliance with MRDP can include:
  • Withholding of payment
  • Account deactivation/suspension

 

Do you know where I can find more information about MRDP?

• You can find more information about MRDP on the website of OECD or UK government website

 

What if the my Space Owner account is a joint account?

• We require the tax details of the account holder for the payment details we hold. If this is a joint account, the account holder must designate one of them to provide the details.

 

Who will decide if Tax is to be deducted?

• The HMRC's tax authority will calculate and deduct any necessary tax deductions. YPS does not manage or collect tax on behalf of the HMRC.

 

When did YPS first notify Space Owners of the impending MRDP requirements?

• Space Owners were first informed of the MRDP requirements on 25/10/2024. The cut-off date for these to be applied was 31/01/2025 in the initial launch.

 

What details do Space Owners need to provide?

• For individual sellers, they must provide the following information:
  • • Full Name
  • • Full Address including Post Code
  • • Date of Birth
  • • Tax Identification Number (TIN)

• Non-UK residents must provide the country equivalent of their national insurance number.

 

Do Space Owners need to apply as self-employed or fill out self-assessment tax forms?

• No. They need to provide their details only and any tax-related discrepancies will be investigated by the HMRC.

 

Do tax-exempt Space Owners need to provide their details?

• Yes. All space owners, regardless of employment status, are required to provide these details. This includes but is not limited to the following:
  • Retirees
  • Students
  • International residents
  • Low income households
  • Benefits claimants

 

Do Republic of Ireland Space Owners need to comply?

• The MRDP regulations apply to all reportable jurisdictions, which include both Northern Ireland and the Republic of Ireland.

 

Do Space Owners need to provide full addresses?

• Yes. Space owners must provide full addresses on their tax information to be compliant.

 

What are the rules for tax-exempt companies?

• Certain partnerships, such as charities, trusts, churches, and others, do not pay income tax and thus do not have a UTR (Unique Tax Reference) or CRN (company registration number).
• Whilst exempt, we must still report under NOTIN on Admin. Please use the following options:
  • Use NOTIN000 for CRN
  • Use NOTIN00000 for UTR

• A list of full exemptions can be found on the gov.uk website here.

 

Where can a sole trader find their UTR?

• This will be under their HMRC login, where they are required to complete self-assessments.

 

What is the Tax-Free Allowance?

• An allowance of £1000 is tax-free. This is within a shared economy and covers any and all potentially tax-deductible incomes.