DAC7 is a directive introduced by the UK’s HMRC (His Majesty’s Revenue and Customs) to enhance tax transparency and compliance within the digital platform economy. It requires digital platforms to report the income earned by sellers using their services. The directive’s primary objective is to prevent tax evasion by ensuring all income generated through digital platforms is accurately reported and taxed. This applies to activities such as selling goods, renting properties or providing services.

All platforms, including The Cornish Way, are obliged to submit accurate information for all relevant short term let homeowners.

The Cornish Way will face hefty fines for non-compliance and therefore it is HMRC’s recommendation that where relevant information is not provided by Homeowners, payments on their account should be withheld until such time as it is provided. An action we would rather avoid, so please assist us.

HMRC refers to payments or values received by owners as ‘Consideration’. Consideration is the net amount paid or credited to the owner after deducting any fees, commissions, and taxes. We are required to report on the net amount, as well as the breakdown of the deducted fees and taxes.

Yes, this applies to all digital platforms operated from the UK.

Where your contract with us is in joint names, e.g. Mr & Mrs, you must provide the DAC7 Requirement information for each individual.