The Government will probe how platforms levy tax, the Chancellor revealed this afternoon.

Phillip Hammond announced the Government will explore how online platforms “could work with HMRC and taxpayers to help people who make money through the platforms understand and meet their tax obligations”.

The Treasury released a consultation on this today.

This stated: “The government needs to minimise opportunities for people to exploit this area of the economy to evade their tax obligations, at the same time as supporting those who want to comply. It is keen to explore what role platforms could play in tax administration, in the way other intermediaries, such as employers, have done in the past and continue to do.

“This call for evidence will explore how government can build on work already undertaken with online marketplaces. We want to understand how platforms interact with their users currently, what they know about them, and understand more about attitudes to tax among people earning money through platforms.”

A Treasury statement read: “Online platforms and marketplaces are good for the economy and for consumers, who benefit from lower prices and more choice.

“However, some people who earn money from using these platforms may never have earned money without an employer to act as an intermediary between them and HMRC before, and can find it difficult to understand and meet their tax obligations.”

The paper also outlines some measures taken by overseas tax authorities and seeks evidence on the impact of those.

The consultation ends on 8 June 2018.