The introduction of the new DAC7 category dropdown, which can be found under the 'Owner Details' tab of the Owner record, streamlines the process of compliance and ensures accurate reporting.
The DAC7 Category dropdown defaults to ‘Not Set’, and it is therefore crucial to update it to the correct category. Please update this for ALL owners (for those of you allowing the Owner to update their details in the Owner Portal, you will still need to set the Category for them here). Please follow the Owner Portal guide for steps on their completion).
For Individuals:
Ensure the owner’s name matches the ‘seller’, which refers to the individual receiving payments. This is essential for compliance and accurate reporting.
Complete all the fields below for individuals, ensuring that personal details align with the records of the payment recipient.
For Businesses:
If the owner is categorised as a Business, different steps and details are required depending on the business type.
1. General Requirements
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Ensure the Business Name field, located above the Owner’s First Name, reflects the Company Registered Name in Companies House. This name will be used in the DAC7 report for accurate identification.
2. Additional Details by Business Type
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UK Companies:
Provide the Company Registration Number issued by Companies House. -
UK Partnerships:
Enter the Unique Taxpayer Reference (UTR) assigned by HMRC.
This dropdown will appear to select the type of business:
When Partnership is selected these fields are required for completion:
When Limited Company is selected these fields are required for completion:
If the address currently stored for the owner is a personal home address you can now specify a business address:
- Untick the checkbox indicating the stored address as personal.
- Update the field to reflect the correct business address for DAC7 reporting purposes.
Not Required for DAC7:
If you are not required to report on this owner under DAC7, please select this in the Category dropdown. This will help you to monitor which owners you are and are not required to report on.
Final Checks
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Verify all fields are completed accurately for the selected category.
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Ensure alignment of names and addresses with official records.
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Double-check specific requirements for UK companies and partnerships to avoid errors in reporting.
By following these guidelines, you’ll ensure seamless compliance with the DAC7 requirements and maintain accurate ownership records.
Related articles
HMRC DAC7 reporting: what you need to know
HMRC DAC7 reporting from within the Owner Portal