HMRC Third-Party Data Reform: Interest and Card Sales from 2028

On 20 July 2026 HMRC opened a technical consultation on draft secondary legislation under Schedule 23 to Finance Act 2026: Better use of new and improved third-party data. The consultation focuses on two datasets that already shape Self Assessment and compliance work — interest income (bank and building society interest and interest from other sources) and card sales reported by merchant acquirers and payment facilitators.

Responses close at 11:59pm on 20 August 2026. The measure is scheduled to come into force on 6 April 2028. That timetable matters for sole traders, landlords, and limited companies that take card payments or hold interest-bearing accounts — HMRC will match third-party feeds more consistently to taxpayer records and use them for digital prompts, nudges, and better-targeted interventions.

Under the draft rules, certain organisations must collect, verify, and report data to HMRC. In scope are financial institutions such as banks and building societies, plus merchant acquirers and payment facilitators that process card sales.

From April 2028, in-scope data-holders will provide data on an ongoing basis without waiting for a separate HMRC notice for each report; report to a set frequency and deadline; collect specific tax references from customers and verify them before submission; make reasonable efforts to obtain missing required data; and notify HMRC before reporting. Draft schemas for interest income and card sales are intended to replace the older BBSI and other interest (OI) data schemas.

The consultation package also includes draft due-diligence guidance and draft notification-to-HMRC guidance. Software vendors, industry bodies, and representative organisations are explicitly invited to comment — not only large banks.

You will not file these third-party returns yourself. The operational burden sits with data-holders. Your exposure is reconciliation: when HMRC’s picture of interest credited or card takings differs from your books, digital nudges and compliance contact become more likely.

Card-heavy sole traders and hospitality or retail companies should already reconcile merchant settlement reports to sales ledgers. From 2028, cleaner matching on tax references makes gaps harder to explain after the fact. Keep customer and business tax reference details accurate with your bank and payment provider when they ask — incomplete or outdated references are exactly what the draft due-diligence rules target.

Interest income that sits outside day-to-day bookkeeping — personal savings, directors’ accounts, or rental deposit interest — still belongs in Self Assessment or company tax packs. Pre-populated figures and third-party matching improve only when your own records are complete enough to explain differences.

If you advise clients, develop software, or represent merchants, send consultation comments to [email protected] by the deadline and say whether you respond as a business, individual, or representative body.

For day-to-day traders: map every card acquirer and payment facilitator you use; store settlement reports with the same periodisation you use for VAT and income tax; and keep UTR / tax reference details consistent across banking, ROS or HMRC online services, and accounting software.

Treat 2026–2027 as a dry run for digital record quality. Making Tax Digital for Income Tax already pushes quarterly income and expense discipline for in-scope sole traders and landlords — third-party card and interest feeds will sit beside those updates in HMRC’s view of your affairs.

Organised sales, bank, and receipt categories make it easier to explain third-party interest and card-sales totals when HMRC or Revenue compare sources. FinnAccountings helps Ireland and UK sole traders and small companies prepare bookkeeping and tax packs with Chartered Accountant insight before you or your ICAEW/ACCA or Chartered Accountant (Ireland) adviser reviews figures. Start a free trial for review-ready drafts — we prepare packs; we do not submit Self Assessment, CT600, or VAT returns to HMRC or Revenue on your behalf.

Start a free trial →

Pair this with our Making Tax Digital Income Tax one-week countdown and the first quarterly deadline briefing. Use the free tax calculator for high-level planning estimates only.

Open free tax calculator (Ireland & UK) →