HMRC One to Many letter – Online Marketplace Sales

HMRC have advised us that they have recently commenced a One to Many letter campaign directed at individuals whom they suspect are operating in the hidden economy and not reporting their income to HMRC. This is based on data HMRC have received from online marketplaces about sellers using their platforms. The purpose of the project is to inform these sellers that HMRC hold information about their online income, prompt them to come forward to make a disclosure to bring their tax affairs up to date, and bring them into compliance. The period under review is the period up to the tax year ending 5 April 2023.

Please tell us about income you’ve earned from online marketplace sales - letter

Assisting clients with making disclosures to HMRC - guidance for CIOT members

If the recipient of the letter has income to declare for any tax year up to 5 April 2023, HMRC’s letter tells them to follow the gov.uk guidance Tell HMRC about underpaid tax from previous years which will invite them to log into the Government Gateway to make a voluntary disclosure. The website page also links to the guidance Make a voluntary disclosure to HMRC which explains that there are several different ways of making a disclosure depending on what needs to be disclosed and the individual’s circumstances. The CIOT has produced guidance for members assisting clients who may have additional tax liabilities to disclose to HMRC – see Assisting clients with making disclosures to HMRC - guidance for CIOT members. It explains the different processes through which taxpayers can make disclosures and explains that members should choose the disclosure service which is most appropriate for their client’s circumstances given all the issues to be corrected and the reason(s) why the inaccuracy(ies) occurred. Members may find it helpful to refer to this guidance when assisting a client in responding to HMRC’s letter.