Key takeaways

  • Under Schedule 23 Finance Act 2026, banks and merchant acquirers and payment facilitators must report data to HMRC without waiting for a notice.
  • The measure comes into force on 6 April 2028, and covers card sales data and interest income data.
  • In-scope firms must collect and verify specific tax references from customers and report to a set frequency and timeframe.
  • HMRC says the data will help customers get their tax right first time, support digital prompts and nudges and target compliance checks.
  • The Budget also says the government will consult on expanding third-party reporting for property income data.

HMRC will receive data on business card sales from payment firms from 6 April 2028. The requirement sits in Schedule 23 of the Finance Act 2026, and HMRC has consulted on the detailed rules. It applies to firms that provide card acquiring services, such as merchant acquirers, and to payment facilitators. The Budget adds that the government will consult on extending third-party reporting to property income data.

What the new reporting covers

HMRC’s technical consultation sets out two kinds of data it wants to improve:

  • Interest income. This covers bank and building society interest and interest from other sources.
  • Card sales. This is data shared by providers of card acquiring services, such as merchant acquirers.

The consultation says the new data schema is due to replace the existing BBSI and OI data schemas. It also covers draft secondary legislation under Schedule 23 Finance Act 2026, a draft notice and guidance on due diligence, and a notice and guidance on how and when to notify HMRC if you are a relevant data holder.

Who must report, and what changes in April 2028

The Finance Act 2026 requires certain organisations to collect, verify and report data to HMRC. That includes financial institutions such as banks and building societies, plus merchant acquirers and payment facilitators.

From April 2028, in-scope data holders must:

  • provide data on an ongoing basis without HMRC issuing a notice
  • report to a set frequency and submit by a set deadline
  • collect specific tax references from customers and verify them before reporting
  • make reasonable efforts to obtain any missing data they are required to collect
  • notify HMRC before they start reporting

The measure comes into force on 6 April 2028. Responses to the consultation were due by 20 August 2026, and HMRC updated the consultation page on 29 October 2026.

Why HMRC wants it

HMRC says the changes are meant to help customers get their tax right first time. Better matching of third-party data to taxpayer records supports digital prompts and nudges, and improves the targeting of compliance interventions. The aim is to improve the quality and consistency of the data HMRC already receives.

The Budget document places the measure in the context of a more modern, data-led tax system. It says the government will consult on expanding third-party reporting requirements for property income data, to improve the information available across the tax system while reducing unnecessary interventions for taxpayers who are meeting their obligations.

What this means for businesses that take card payments

The consultation describes reporting by the payment provider. It does not create a new return for the business. The practical effect is that HMRC will hold an independent record of card takings alongside what the business reports.

For sole traders, partnerships and companies that take card payments, that makes accurate bookkeeping more important. If the card sales figures in your accounts differ from what the acquirer reports, HMRC’s systems will be able to see that. This is an inference from HMRC’s stated aim of matching third-party data to taxpayer records, not a rule in the draft legislation.

Merchants may be asked for tax references. In-scope data holders must collect and verify specific tax references from their customers, so expect requests from acquirers and payment platforms.

What advisers should do

  1. Check card sales against the accounts. Reconcile the merchant statements to the sales ledger as standard practice.
  2. Keep merchant statements. They are the likeliest source of any mismatch.
  3. Expect questions about tax references. Be ready to explain to clients why a payment provider asks for them.
  4. Follow the final regulations. The consultation covers draft secondary legislation, which may change before 2028.
  5. Watch for the property income consultation. It may affect landlords and agents.

For other HMRC data-led measures in the Budget, read HMRC compliance and enforcement and Budget 2026 for investors.

Frequently asked questions

When will payment firms start reporting card sales data to HMRC?

The measure comes into force on 6 April 2028.

Which firms must report?

Banks and building societies for interest income, and merchant acquirers and payment facilitators for card sales data, under Schedule 23 Finance Act 2026.

Do businesses have to send HMRC anything new?

The consultation describes reporting by the data holders, not a new return for businesses. Customers may be asked for tax references that data holders must collect and verify.

Is this live now?

No. HMRC consulted on draft rules over the summer. The reporting requirement starts on 6 April 2028.

Sources

Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 1 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.