by Ariful | Mar 17, 2026 | Business
The End of “Estimate-Based” Reporting
For years, many businesses, especially those operating across borders, relied on manual reconciliations at the end of the financial year. Those days are over. The ATO has moved toward a “data-first” infrastructure.
By March 2026, the ATO’s myGov systems and business portals have become significantly more sophisticated. They are now pre-filling data from a wider variety of sources, including share registries, property transaction records, and even digital platform reports. This means the ATO often knows your sales figures and asset disposals before you even start your tax return.
The Benefit: Pre-filling reduces the administrative burden if your data is clean.
The Risk: If your internal records don’t match the ATO’s third-party data, you trigger an immediate red flag for an audit.
Capital Gains Tax (CGT): Accuracy is Non-Negotiable
If you are selling assets in Australia, be it investment property, business equipment, or shares, the CGT landscape has tightened. While the 50% discount for assets held over 12 months remains a cornerstone of the Australian tax system, the reporting requirements have become granular.
The ATO is now using advanced matching technology to track the “cost base” of assets more accurately. If you’ve previously been a bit “flexible” with how you calculated the acquisition costs of your business assets, you need to tighten up your bookkeeping immediately.
Reporting Share and Property Transactions
The ATO now receives direct feeds from the Australian Securities and Investments Commission (ASIC) and state-based land titles offices. When you sell, the transaction is flagged in real-time. To avoid penalties, you must ensure that your CGT calculations are performed at the point of sale, not six months later. If you’re looking for broader context on how tax shifts impact your bottom line, check out our insights on 2024 tax bracket changes to see how the trajectory of Australian tax has evolved.
Tighter Scrutiny on Business Deductions
Perhaps the biggest change affecting daily operations is the ATO’s crackdown on business deductions. The “grey areas” of 2024 and 2025 have been replaced by strict “bright-line” rules in 2026.
Motor Vehicle and Travel Claims
The ATO is implementing much tighter scrutiny on motor vehicle and travel claims. Gone are the days of claiming a flat percentage of your car expenses without a rigorous logbook. In 2026, the ATO expects digital records. If you are a sales professional or a business owner traveling across Australia to meet clients, you must maintain a contemporaneous digital log.
Home Office Expenses
With the hybrid work model now permanent for many, the ATO has standardized the home office deduction. You can no longer simply “guess” your electricity and internet usage. You must either use the revised fixed-rate method (which requires a record of all hours worked) or the actual cost method (which requires receipts for every single cent spent).
Action Step: Use a dedicated app to track your hours and expenses. If you can’t prove it, don’t claim it. To avoid late payment fines and audit stress, let us handle the heavy lifting of your ongoing compliance and bookkeeping.
The “Leisure Facility” Trap for Property Sellers
A specific change effective from 2026 involves holiday homes and short-term rentals. If you own a property that is used for both personal holidaying and as a rental income stream, the rules have shifted.
From July 2026, the ATO may classify specific holiday homes as “leisure facilities.” If a property is deemed a leisure facility, you cannot claim maintenance deductions unless the property is mainly rented out to generate income. This is a significant blow to “lifestyle” investors. If you sell such a property, the way your CGT is calculated will also be affected by these disallowed deductions.
Digital Compliance and GST Transparency
For e-commerce sellers, GST (Goods and Services Tax) compliance is becoming more automated. The ATO is pushing for real-time data submission for business transactions. This means that your Business Activity Statements (BAS) should ideally be a reflection of your live accounting data.
If you sell through platforms like Amazon, eBay, or Shopify, the ATO is increasingly using data-sharing agreements with these platforms to verify your GST obligations. If you are a foreign entity selling into Australia, ensure you are registered for GST if you meet the AUD $75,000 threshold.
Pro Tip: Managing cross-border VAT and GST can be a nightmare. We offer standalone modular tax services to help you navigate these global hurdles without the headache.
How Sterlinx Global Supports Your Australian Growth
Navigating the ATO’s 2026 updates doesn’t have to be a solo mission. At Sterlinx Global, we aren’t just consultants who give you a “to-do” list and leave you to it. We are a Global Tax Compliance Suite.
What does that mean for you? It means you provide the data, and we complete the compliance. We handle the daily and ongoing tasks that keep your business in the ATO’s good books:
- Bookkeeping: We maintain your records to the standard the ATO demands.
- Tax Calculations: Whether it’s GST, CGT, or Income Tax, we do the math.
- Filings: We submit your BAS and year-end accounts on time, every time.
- Cross-Border Expertise: We support Australian entities, UK Limited Companies, USA LLCs, and Canadian Corporations.
Don’t let a change in tax law slow down your expansion. Whether you are dealing with the intricacies of value added tax or trying to understand Australian corporate tax, we have the infrastructure to support you.
Checklist: Staying Compliant in 2026
- Validate your GST Registration: If you’re nearing the $75,000 threshold, register now to avoid back-dated penalties.
- Digital Logbooks: Start using automated tracking for all motor vehicle and home office claims.
- Review Asset Holdings: If you plan to sell property or shares, ensure your “cost base” records are documented and verified.
- Leisure Facility Assessment: If you own holiday rental properties, evaluate whether they will be classified as leisure facilities and adjust your deduction strategy accordingly.
- Real-Time Accounting: Transition to live accounting systems that feed directly into your BAS submissions.
- Professional Support: Consider engaging a tax professional who understands the 2026 ATO changes and can support your compliance calendar.
by Ariful | Mar 17, 2026 | UK Updates
Making Tax Digital (MTD): The 6 April 2026 Deadline
The biggest headline for 2026 is undoubtedly the mandatory rollout of Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA). Starting 6 April 2026, if you are self-employed or a landlord with a total qualifying income of over £50,000, the old way of filing a single yearly tax return is gone.
Instead, you will be required to:
- Maintain digital records of all business transactions.
- Use HMRC-compatible software to send quarterly updates of your income and expenses.
- Submit an “End of Period” statement and a final declaration.
Why this matters for e-commerce sellers: If you operate as a sole trader or have significant property income alongside your business, your first quarterly update deadline will be 7 August 2026. Missing this window isn’t just a minor slip-up; HMRC is tightening its penalty regime to punish late filings more aggressively.
Dividend Tax and the “Fiscal Drag” Trap
For many business owners, paying yourself through dividends has traditionally been the most tax-efficient route. However, the 2026 updates bring a 2% rise in Dividend Tax rates across all bands.
When you pair this with the fact that the Personal Allowance remains frozen at £12,570, you encounter “fiscal drag.” As your business grows and your income rises, a larger percentage of your profit is pulled into higher tax brackets because the thresholds aren’t moving.
It is essential to review your withdrawal strategy now. If you are a non-UK resident managing a UK entity, understanding how tax works for a foreign director is vital to ensure you aren’t overpaying in multiple jurisdictions.
Capital Gains and Business Asset Relief Changes
Thinking of exiting your e-commerce brand or selling a portion of your business in 2026? You need to act with precision. Capital Gains Tax (CGT) for those claiming Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) is increasing from 14% to 18%.
While 4% might sound small on paper, it represents a significant chunk of your hard-earned equity. If you are in the middle of a merger or acquisition, ensuring your UK company accounting is spotless is the first step toward a successful (and tax-compliant) exit.
New Allowances for Plant and Machinery
In a bit of good news for businesses with physical infrastructure, HMRC has introduced a new 40% first-year allowance for plant and machinery. However, this comes as the standard writing-down allowance drops from 18% to 14%.
If you are an e-commerce business investing in new warehouse tech, packaging machinery, or office equipment, timing your purchases is key. By leveraging the 40% allowance in the first year, you can significantly reduce your taxable profit, giving you more cash flow to reinvest in inventory or marketing.
The Compliance Crackdown: Whistleblowers and Penalties
HMRC is no longer just waiting for you to make a mistake; they are actively incentivizing people to report non-compliance. A new whistleblower scheme now offers rewards of 15% to 30% of the tax collected if the amount exceeds £1.5 million.
Furthermore, the late filing penalty system has been overhauled. It now operates on a “points-based” system. Every time you miss a deadline, whether it’s VAT or the new MTD quarterly updates, you receive a point. Once you hit a certain threshold, a financial penalty is automatically triggered.
This is why end-to-end compliance delivery is critical. You provide the data; calculations and filings are handled properly. The goal is to keep your “points” at zero.
2026 Tax Update Checklist for Business Owners
To stay ahead of these changes, use this checklist to audit your current setup:
- Check your income threshold: Are you over the £50,000 MTD limit? If so, you must have compatible software by April 2026.
- Review your Dividend strategy: With the 2% rate increase, does your current salary-vs-dividend split still make sense?
- Audit your digital records: Are you still using spreadsheets? HMRC requires “digital links” between software; manual copy-pasting will soon be a compliance risk.
- Evaluate your business model: Whether you are navigating B2B vs B2C business models, your VAT and tax obligations change based on who your customer is and where they are located.
- Plan for 2027: The MTD threshold is scheduled to drop to £30,000 in April 2027. Even if you aren’t affected this year, you will be soon.
How Professional Support Aids Your Growth
Navigating HMRC updates shouldn’t take time away from growing your brand. A comprehensive Global Tax Compliance Suite provides a structured, ongoing compliance model. Rather than just advising, execution matters. From bookkeeping and VAT filings to year-end accounts and international tax management, compliance is ensured across the UK, USA, Canada, and Australia.
If you are a non-UK resident looking to enter the market, company formation for non-UK residents services combined with full-suite accounting ensures you are set up correctly from day one.
FAQ: HMRC 2026 Tax Updates
What is the deadline for MTD for Income Tax?
The mandatory start date is 6 April 2026 for those with qualifying income over £50,000. The first quarterly update must be submitted by 7 August 2026.
How much is Dividend Tax increasing in 2026?
Dividend tax rates are increasing by 2% across the basic, higher, and additional rate bands.
Does MTD apply to Limited Companies in 2026?
Currently, the April 2026 mandate applies to self-employed individuals and landlords. MTD for Corporation Tax is expected in the future but has not been mandated for this specific date. However, most UK Limited Companies are already using MTD for VAT.
What is the new whistleblower reward?
HMRC may pay between 15% and 30% of the tax, interest, and penalties collected as a result of a report, specifically for cases where the tax involved exceeds £1.5 million.
Are business rates changing?
Yes, business rates are being revalued in 2026. There will be lower multipliers for retail and hospitality properties valued under £500,000, while larger properties may see an increase.
by Ariful | Mar 17, 2026 | EU VAT Updates
The DAC8 Revolution: Total Transparency is Here
As of January 1, 2026, the eighth amendment to the Directive on Administrative Cooperation, known as DAC8, is officially in full swing. This is a game-changer for transparency. DAC8 extends EU tax transparency rules to include crypto-assets and enhances the exchange of information between member state tax authorities.
What does this mean for you? It means the “blind spots” are disappearing. If you are selling digital services or utilizing modern payment gateways, tax authorities now have a much clearer view of your transactional data. This directive ensures that information about income earned through digital platforms is shared automatically across the EU.
Key takeaway: You can no longer afford fragmented record-keeping. Whether you are dealing with B2B or B2C sales, ensuring your VAT records are accurate is the first step in surviving a DAC8 audit.
VAT in the Digital Age (ViDA): The Road to 2035
The EU’s “VAT in the Digital Age” (ViDA) initiative is arguably the most ambitious reform in decades. While the full implementation timeline stretches toward 2035, the 2026 milestones are critical. We are seeing a major shift toward Digital Reporting Requirements (DRR) and the expansion of the “Deemed Supplier” rule.
1. Digital Reporting Requirements (DRR)
The EU is moving away from traditional summary VAT returns and toward real-time or near-real-time digital reporting for intra-community transactions. This reduces the “VAT gap” (the difference between expected and collected VAT) but increases the technical burden on your business. You must ensure your accounting systems can output data that meets these new EU standards.
2. The Platform Economy
If you run a platform that facilitates short-term accommodation or passenger transport, or even certain e-commerce marketplaces, you may now be “deemed” the supplier for VAT purposes. This means the platform, not the individual provider, is responsible for collecting and remitting the VAT.
This change simplifies things for the individual seller but adds a massive compliance layer for the platform owner. Understanding the distinction between VAT and non-VAT sales is essential here to avoid overpaying or under-collecting.
Selling into Ireland: Specific 2026 Updates
For many UK, US, and Australian businesses, Ireland serves as the gateway to the EU. In 2026, Ireland continues to align strictly with EU-wide mandates while maintaining its own rigorous audit schedule.
Ireland’s standard VAT rate remains at 23%, but the focus this year is on the correct application of the One-Stop Shop (OSS). If you are selling goods or services to Irish consumers from outside the country, you must ensure you are either registered for VAT in Ireland or correctly utilizing the Union or Non-Union OSS schemes.
Miscalculating your turnover can lead to disaster. It is vital to know the implications of exceeding VAT thresholds in a specific jurisdiction, as this often triggers an immediate requirement for local registration if you aren’t using the OSS effectively.
The “Tax Omnibus” Initiative: Simplification on the Horizon
There is some good news. Expected in the second quarter of 2026, the European Commission is set to publish a “tax omnibus” initiative. This is designed to reduce the “overlap” in various EU tax instruments.
The goal is simplification. The EU recognizes that for an SME or a fast-growing tech agency, managing DAC8, ViDA, and local member state rules simultaneously is a heavy burden. This initiative aims to:
- Standardize reporting formats.
- Reduce duplicative data requests.
- Streamline the cross-border compliance burden.
While we wait for the final text, the message is clear: stay lean and stay digital. The businesses that thrive will be those that have moved away from manual spreadsheets and toward automated, data-driven compliance.
Digital Services Taxation (DST): A Unified Approach
For years, individual EU countries (like France, Italy, and Spain) implemented their own unilateral digital services taxes. This created a headache for SaaS companies and digital agencies. In 2026, we are seeing a stronger push toward a coordinated EU-wide approach.
This prevents “double taxation” and ensures a level playing field. If your business earns revenue from digital advertising, social media platforms, or the sale of user data, you must monitor these standardized rates. The EU maintains a minimum standard VAT rate of 15%, but digital service levies can sit on top of this, depending on your global revenue.
Your 2026 Cross-Border Compliance Checklist
Don’t let these updates overwhelm you. Use this checklist to ensure your business is ready for the remainder of 2026:
- Audit Your Data Points: Ensure your checkout process captures the customer’s location accurately to apply the correct VAT rate.
- Verify VAT Numbers: Use reliable tools to check your B2B customers.
- Review OSS/IOSS Status: Are you using the One-Stop Shop? If your EU sales are growing, this is often the most efficient way to handle filings.
- Prepare for Real-Time Reporting: Start looking at how your invoicing data is structured. Real-time reporting is coming to more member states this year.
- Check Thresholds: Regularly monitor your sales volume in individual countries like Germany, France, and Spain.
How Sterlinx Global Supports Your EU Expansion
At Sterlinx Global, we operate as your dedicated Global Tax Compliance Suite. Our model is simple: you provide us with your transactional data, and we complete your compliance on an ongoing, daily basis.
For businesses expanding into Europe, we offer specialized VAT-only services in the EU. Whether you need VAT registration in Germany, monthly filings in Spain, or OSS management for your entire European operation, we handle the operational execution.
We serve:
- E-commerce Brands: Navigating marketplace VAT obligations and cross-border sales.
- SaaS Providers: Managing digital service taxation and real-time reporting requirements.
- Digital Agencies: Handling OSS filings and ensuring compliance across multiple EU jurisdictions.
by Ariful | Mar 17, 2026 | Canada Updates
The Digital Economy: New GST/HST Thresholds for UK Sellers
If your UK-based business provides digital services, think SaaS, e-books, or streaming, to Canadian consumers, the rules just got tighter. As of February 10, 2026, the CRA has clarified and reinforced the registration requirements for non-resident vendors.
The magic number is $30,000 CAD. If your worldwide taxable supplies to Canadian consumers exceed this threshold over a 12-month period, you must register for, collect, and remit GST/HST. This applies even if you have no physical presence in Canada. Failing to register can lead to significant back-tax liabilities and penalties that eat into your margins.
Action Step: Review your sales data for the last 12 months. If you are approaching that $30k mark, talk to an expert to initiate your GST registration before the CRA catches up with you. Understanding the B2B vs B2C business models is crucial here, as the tax treatment differs significantly between the two.
Massive Boosts for Innovation: The Expanded SR&ED Program
For UK companies conducting research and development within their Canadian subsidiaries, 2026 brings fantastic news. The Scientific Research and Experimental Development (SR&ED) program has seen its most significant expansion in years.
The expenditure limit for the 35% refundable tax credit has doubled to $6 million. For Canadian-controlled private corporations (CCPCs), this means you could potentially claim up to $2.1 million in annual cash refunds. This change is effective for tax years beginning after December 15, 2024, meaning its full impact is being felt right now in 2026.
This is a game-changer for tech startups and biotech firms expanding from the UK to Canada. Instead of waiting for future profits to offset costs, you get actual cash back into your business to reinvest in further innovation.
Federal Income Tax: Brackets and Adjustments
The federal government has adjusted tax brackets for 2026 to account for inflation and economic shifts. For UK businesses with Canadian entities or those employing Canadian residents, these new thresholds affect your corporate strategy and payroll calculations.
- Income between $58,523 and $117,045: Taxed at 20.5%.
- Income between $117,045 and $181,440: Taxed at 26%.
Additionally, some previously feared changes have been scrapped. The planned capital gains tax increase and the Canadian Entrepreneurs’ Incentive are no longer on the table for 2026. This provides a much-needed sense of stability for UK investors looking to exit or restructure their Canadian holdings.
British Columbia: A Double-Edged Sword for 2026
British Columbia (BC) remains a top destination for UK expansion, but 2026 brings a mix of higher costs and lucrative incentives.
The Tax Hike
The provincial personal income tax rate for BC has increased from 5.06% to 5.60% for the first $50,363 of taxable income. Furthermore, the provincial government has suspended bracket indexation until 2030. This means as wages rise, more of your employees’ income (or your own, if you are a foreign director) will be pushed into higher tax brackets.
The Manufacturing Incentive
To offset these hikes, BC has introduced a temporary 15% manufacturing and processing (M&P) investment tax credit. If your business is investing in buildings, machinery, or equipment between April 1, 2026, and March 31, 2031, you can claim a credit of up to $300,000 annually.
Compliance Tip: To claim these credits, your bookkeeping must be meticulous. Ensuring every eligible expense is captured and categorized correctly for year-end filings is essential.
Payroll and Employment: Increased Contributions
Managing a Canadian team from the UK requires a clear understanding of mandatory payroll deductions. For 2026, the federal government has raised the maximum mandatory Canada Pension Plan (CPP) and Employment Insurance (EI) contributions.
As an employer, you are responsible for matching these contributions. Ensure your 2026 budget accounts for these incremental increases. Dealing with international payroll can be a headache, especially when managing cross-border currency, but it is essential to avoid CRA audits.
Environmental Taxes and Provincial Specifics
Canada continues its push toward a green economy, and 2026 sees several localized updates:
- Carbon Rebate Changes: The Canada Carbon Rebate for small businesses is scheduled to end for any returns filed after October 30, 2026. If you have unclaimed rebates, act now.
- Nova Scotia EV Levy: Effective October 1, 2026, Nova Scotia has introduced an Electric and Hybrid Vehicle Levy. This is payable upon registration and every two years thereafter.
- Vaping Product Tax: A new tax aligned with the federal framework took effect on April 1, 2026, in Nova Scotia. If you are in the retail or distribution sector, ensure your pricing models reflect this.
Why Compliance is Your Best Growth Strategy
Navigating these changes while running a business in the UK is a tall order. The CRA is known for its efficiency in tracking digital sales and cross-border transactions. One missed GST filing or an incorrect payroll deduction can lead to frozen accounts or hefty fines.
Professional compliance services can streamline your operations and ensure accuracy across all filings. A comprehensive approach includes:
- Bookkeeping: Daily entries so your books are always tax-ready.
- VAT/GST Filings: Management of registration and periodic filings in Canada, the UK, and beyond.
- Year-End Accounts: Professional preparation of your financial statements to satisfy both UK and Canadian authorities.
2026 Canada Tax Checklist for UK Businesses
To stay ahead of the curve, follow this simple checklist:
- Verify GST/HST Status: Have your sales to Canada exceeded $30,000 CAD in the last year?
- Audit R&D Projects: Are you eligible for the new $6M SR&ED limit?
- Update Payroll: Have you adjusted for new CPP and EI contribution limits?
- Review Provincial Taxes: Are you operating in BC or Nova Scotia? Check for applicable credits and new levies.
- Carbon Rebate Deadline: Claim any outstanding rebates before October 30, 2026.
- Document R&D Expenses: Maintain detailed records of all qualifying SR&ED expenditures.
- BC Manufacturing Credits: If investing in equipment, ensure proper documentation for the M&P credit claim.
by Ariful | Mar 17, 2026 | UK Updates
The First Major Milestone: The January 2026 Data Dump
We have just passed a significant turning point. On January 31, 2026, major digital marketplaces submitted their first full year of seller data for the 2025 calendar year directly to HMRC. This move is part of the OECD’s model reporting rules, and it changes the fundamental relationship between sellers and the tax office.
What HMRC Now Knows
In previous years, HMRC relied largely on your self-reported figures. Now, they receive automated reports containing:
- Your Gross Sales Proceeds: Exactly how much money passed through the platform.
- Transaction Counts: How many items you sold.
- Platform Fees: Deductions made by the marketplace.
- Seller Identification: Your linked bank accounts and personal details.
This means HMRC can now cross-check your Self Assessment tax returns against third-party data instantly. If there is a discrepancy between what eBay says you earned and what you reported, an automated red flag is likely to follow. Don’t worry: this doesn’t mean you are in trouble if you have been honest; it simply means your record-keeping must be impeccable to explain any differences in fees or returns.
Making Tax Digital (MTD) for Income Tax: The Quarterly Shift
The most significant operational change in 2026 is the rollout of Making Tax Digital for Income Tax Self Assessment (MTD ITSA). For years, ecommerce sellers have operated on an annual cycle: calculating profits once a year and filing by January 31. That era is ending.
Quarterly Reporting is the New Standard
If your gross income (turnover) exceeds £50,000, you are now required to:
- Maintain Digital Records: Paper ledgers or unlinked spreadsheets are no longer sufficient. You must use functional compatible software to track every sale and expense.
- Submit Quarterly Updates: Every three months, you must send HMRC a summary of your business income and expenses. This provides HMRC with a real-time view of your tax liability.
- Final Declaration: At the end of the tax year, you submit a final declaration to confirm your total figures.
It’s About Turnover, Not Profit
A common misconception is that if your profit is low, you don’t need to worry about MTD. This is incorrect. The requirement is based on your gross income. If you sell £55,000 worth of goods but your profit is only £10,000 after costs, you are still legally required to join the MTD scheme.
Managing this volume of data every quarter can be exhausting for a solo founder. This is why advanced financial forecasting and automated compliance are essential: to ensure you never miss a quarterly window.
Stricter VAT Enforcement and the ‘0990’ Reference
VAT compliance has also seen a tightening of the screws. HMRC has introduced new security measures for businesses registering for VAT or changing their legal structure.
The 0990 Application Reference
New VAT applicants now often require a specific application reference number (‘0990’) to complete their registration. HMRC is using this to filter out fraudulent applications and ensure that “deemed supplier” rules are being followed correctly. If you are an overseas seller or a UK business using marketplaces, the marketplace is often responsible for collecting and remitting VAT, but you still have strict reporting obligations.
Failing to apply the correct VAT rate can result in heavy penalties. By using a comprehensive compliance approach, you ensure that your VAT filings in the UK and across the EU are handled with precision, reflecting the latest 2026 regulatory standards.
The Trading Allowance: Who Is Exempt?
Not every casual seller needs to register as a business. HMRC maintains the £1,000 Trading Allowance.
- Under £1,000: If your total gross income from all “side hustles” or ecommerce activities is less than £1,000 in a tax year, you generally do not need to report it.
- Over £1,000: The moment you cross this threshold, you must register for Self Assessment and keep detailed records of sales, platform fees, and inventory costs.
Even if you are just starting out, keeping professional records from day one is essential. It makes the transition to a Limited Company or VAT registration much smoother as you grow.
Looking Ahead: The 2029 E-Invoicing Roadmap
While 2026 is the year of data sharing and quarterly reporting, HMRC has already signaled the next big shift. The UK government has set a target for mandatory e-invoicing to begin in 2029.
By 2026, we expect further guidance on the technical standards for these invoices. E-invoicing will mean that invoices are sent directly from your system to your customer’s system (and potentially HMRC) in a structured data format. This will eliminate manual data entry and further reduce the “tax gap.” Getting your digital records in order today for MTD is the best way to future-proof your business for the e-invoicing mandate of the near future.
FAQ: HMRC 2026 Ecommerce Updates
What are the new HMRC rules for online sellers in 2026?
The 2026 updates focus on automated data sharing from platforms like Amazon and eBay directly to HMRC, and the mandatory start of Making Tax Digital (MTD) for Income Tax, which requires quarterly reporting for those over specific income thresholds.
Does Etsy report to HMRC 2026?
Yes. Since January 2024, Etsy has been required to collect data on UK sellers. By January 31, 2026, Etsy submitted its first full year of seller transaction data to HMRC as part of the automated reporting requirement.
