DAC7 is a directive implemented by the UK’s HMRC (Her Majesty’s Revenue and Customs) to enhance tax transparency and compliance within the digital platform economy.
This regulation mandates digital platforms to report the income earned by sellers using their services. The primary goal is to prevent tax evasion by ensuring that all income generated through digital platforms is accurately reported and taxed accordingly. This includes income from activities such as selling goods, renting properties, or providing services.
The directive aims to create a level playing field, ensuring that digital transactions are subject to the same tax rules as traditional business activities. By enforcing DAC7, HMRC seeks to close the tax gap and ensure fair taxation in the growing digital economy.

In the case of SuperControl, our agencies will be the ones who have to report on the income they have paid to their owners.
It necessary to generate an XML report from the owner income, which can be uploaded to the HMRC online gateway. We have also implemented ways for the agencies to gather data that is a requirement by HMRC e.g. National insurance, DOB, City of birth etc.

If you have any questions about how DAC7 might impact your business, please contact your bookkeeper and/or accountant.