DAC7 (Directive on Administrative Cooperation)

The DAC7 regulation is set out by the European Union and is being introduced in 2025 for the UK. It makes it mandatory for online platforms to report information about it's clients, and money earned using its services to HMRC.

Does it apply to me?

If you are an Agency who sources bookings on the behalf of a Property Owner, then you are deemed as a “platform provider”, and need to report any income generated through your website for your "sellers". You can find out more here https://www.gov.uk/guidance/reporting-rules-for-digital-platforms

When do I need to report?

HMRC have set an initial deadline for 31/01/2025. You are given the option to submit all of your "sellers" in 2024, or just those who signed up in 2024. If you opt for the second option, you'll need to report all other owners in January 2026. https://www.gov.uk/guidance/register-to-carry-out-digital-platform-reporting

What you need to do

We have added new functionality so you can be compliant and are required to populate the following:

New Owner Fields - If you haven't already, you'll need to first make sure that you have each of your Owners added. We've also introduced new fields such as "Date of Birth" and "National Insurance Number" which are required by HMRC.
Site Settings > Owners
Remittances - You can now record when you have made payments to your Owners, and will need to backdate for bookings in 2024.
Bookings > Financials > Remittances
Sellers Financial Report - Once your Owners are fully populated, and Remittances are recorded, you can then download the new report in an XML format, which can then be uploaded to HMRC.
Reports > Sellers Financial Report

Registering with HMRC

Before you can submit your report you will need to register your business with HMRC. They provide 2 options, and as the website owner you will need to select "An operator of a digital platform" as you "manage a website that allows sellers to connect to customers for the sale of services"

https://www.tax.service.gov.uk/digital-platform-reporting/register/user-type

Once you have registered you can follow their next steps to submit the necessary information from the Sellers Financial Report.

Guidance is available from PASC (Professional Association of Self Caterers) who will always be your best source of support for industry related queries.