Four Days Left: HMRC Third-Party Data Consultation Closes 20 August

As of 16 August 2026, HMRC’s technical consultation “Draft legislation: Better use of new and improved third-party data” has four days left. Responses must arrive by 11:59pm on 20 August 2026. The pack covers draft secondary legislation under Schedule 23 Finance Act 2026, draft schemas for interest income and card sales, and draft notices on due diligence and data-holder notification.

The policy aim is to help customers get tax right first time by improving how HMRC matches third-party feeds to taxpayer records, supporting digital prompts, and targeting compliance interventions more accurately. Draft rules are intended to take effect from 6 April 2028 for in-scope ongoing reporting.

HMRC expects banks, building societies and other financial institutions, merchant acquirers and payment facilitators, industry bodies, and other stakeholders with an interest in the proposed changes. Send responses by email to [email protected] — say whether you are a business, individual, or representative body, and for representative bodies how many people you represent.

This is a technical consultation aimed mainly at data-holders. Sole traders do not need to rewrite their 2026/27 return this week because of the close date — but card-taking SMEs and anyone with material bank interest should understand what will feed HMRC’s matching engines from 2028.

In-scope organisations would need to provide data to a set frequency and deadline, collect and verify specific tax references from customers before submission, make reasonable efforts to obtain missing required data, and notify HMRC before reporting. Draft schemas would replace existing BBSI and other interest schemas, with a separate card-sales schema for merchant acquiring data.

Use the remaining days for concrete operational examples — schema field problems, due-diligence friction, notification timing — rather than general support or opposition. HMRC has already scaled proposals after earlier industry feedback; final technical detail still matters.

Reconcile merchant settlements, online gateways, marketplace payouts, and cash to sales ledgers so later third-party matches are explainable. Keep interest certificates and account schedules export-ready for advisers.

Landlords and sole traders inside Making Tax Digital for Income Tax should keep interest and property income categories consistent across quarterly updates and year-end. Soft landing on late quarterly-update points in 2026/27 does not soften third-party matching once the 2028 regime is live.

Clean sales and bank categories make third-party matches easier to evidence. FinnAccountings helps Ireland and UK businesses 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 respond to HMRC consultations or file returns on your behalf.

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For the three-day countdown as of 17 August, use the dedicated briefing, then the fuller closes overview.

Third-party data consultation: three days left →

Place the consultation beside MMTAR and MFA in the same agent fortnight.

Agents’ critical fortnight: 18–20 August 2026 →

Background on interest and card-sales matching from earlier HMRC policy work remains useful context.

HMRC third-party data: interest and card sales →