âď¸Don't worry - for most participants, this won't change your tax situation
First things first: If you're a low earner on Prolific, this new reporting requirement likely won't change anything about your tax situation. Whether you need to pay tax on your Prolific earnings has always been dependent upon your individual circumstances and local tax lawsâthis hasn't changed.
The key points to remember:
⤠This is about information reporting, not new taxes
⤠Low earnings are often below taxable thresholds in many countries
⤠We're legally required to collect this information, but it doesn't automatically mean you owe taxes
⤠We're here to make this process as simple as possible for you
What is digital platform reporting / DAC7 and why are you asking for my information?
Digital platform reporting (DAC7 in the EU and similar rules in other countries) is a new global standard for tax transparency. Governments around the world want to ensure income earned through online platforms is properly reported, just like traditional income sources.
What this means for you:
- Prolific is now required to collect some personal information and report your earnings to relevant tax authorities
- This helps tax authorities get a clearer picture of the digital economy
- It's similar to how employers report your income if you have a traditional job
Important: This reporting doesn't create any new tax obligations - it only makes existing income more visible to tax authorities. The same tax rules that have always applied to your Prolific income continue to apply.
What information do you need and why?
We need:
- Some basic personal details (e.g., your name, address, date of birth);
- Your birthplace and/or Tax Identification Number (e.g., NI number, SSN);
- Any PayPal email addresses you use to cashout; and
- Your earnings on Prolific (which we will report quarterly).
This allows tax authorities to accurately identify taxpayers and match reported income to the correct individuals.
Do I have to pay tax on my Prolific earnings?
This depends entirely on your personal circumstances, including:
- Your total income from all sources
- Tax thresholds in your country
- Whether you have other tax deductions or credits
- Your country's specific tax rules for this type of income
Many participants with low earnings may be below their country's taxable thresholds. This reporting requirement doesn't change how much tax you owe - it only makes the income more visible to tax authorities.
FAQ's
What if I only earn a small amount on Prolific?
While all earnings must be reported regardless of amount, small earnings are often below taxable thresholds in many countries. Check with your local tax authority or a tax advisor about minimum thresholds for reporting income on your tax return.
What if I refuse to provide this information?
We understand your concerns about data privacy. However, this is a legal requirement that all digital platforms must comply with. Unfortunately, if we don't receive the required information, we may need to restrict or suspend your account to remain compliant with these regulations.
We're committed to protecting your personal information and will only share what we are legally required to with the relevant tax authorities.
Will this affect my ability to participate in studies?
As long as you provide the required information, this will have no impact on your ability to participate in studies. The information you provide for tax reporting (such as birthplace) will not be used to screen you in or out of studies.
If I close my account or my data is deleted from Prolific, will this information still be reported?
Yes, even if you close your account or we delete your data, we are still required to report this information for the periods you were active on the platform. This is because the reporting is based on your activity during the reporting period, regardless of your current account status.
Where can I see what has been reported / where can I see how much I earned?
We will notify you of the information we have reported, including the exact earnings by quarter.
I didnât cash anything out in the tax year, will you still report any information on me?
We will be reporting earnings based on the approved responses in each quarter of the calendar year. i.e. at the point the money is available in your Prolific account. That is because these funds are held under trust and belong to you from that point in time so even if you chose not to cash them out, you have earned that money within the year.
What period are you reporting on and when?
We will be reporting on your earnings for the calendar year (January 1st to December 31st). The reporting typically happens in the following year by 31st January.
How will this information be stored and handled?
Your information will be stored safely and securely, and handled in accordance with our usual robust security measures and our data protection policies, which comply with applicable data protections laws. Please see our Participant Privacy Notice for further details.
My birthplace is in a different country to where I currently reside, which authority do you report my earnings to?
We report your earnings to the tax authority of your country of residence, not your country of birth. Your tax residency is the primary factor determining where your income is reported. Your birthplace is collected in place of a Tax Identification Number to ensure you are being correctly identified in the reporting.
My country of birth no longer exists, what information should I enter?
In this case, please enter the name of the country as it was at the time of your birth, e.g. Czechoslovakia.
Is this a one-time request or an ongoing obligation?
This is an ongoing obligation. We are required to report your earnings annually. So, we will need to collect and report this information each year. We will keep you updated on any changes or requirements.
How long will you hold this information for?
We are required to hold the information we report to the relevant tax authority for a period of 5 years following the end of the reporting period. Please see our Participant Privacy Notice for further details about how long we keep personal data.
What happens if my information changes (e.g. change of address)?
It is important to maintain accurate and up-to-date information within your account. Should any of your details change - such as your address - please promptly update them through the account settings. This ensures compliance with reporting requirements to the relevant tax authorities. Our support team is available to assist with any difficulties encountered during this process
Who are the 'authorities' you are reporting to?
We are required to report your earnings and associated data to the tax authority of your jurisdiction of tax residence. For example, in the United Kingdom, this is HMRC. In other countries, the corresponding national tax authority will receive the reported information.
Where can I find my National Insurance Number or Tax Identification Number?
You will find this number on various documents based on the issuing country. For example, this number can be found on payslips, letters about tax, pensions and benefits or through your personal tax account.
If you are based in the UK, you can find more information here: Find your national insurance number.
If you are EU based and canât find your tax identification number, we recommend you contact your issuing countriesâ tax authorities.
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