HMRC is making changes to the way it collects financial information, and UK business owners should be paying attention.
In November 2026, HM Revenue & Customs published details of measures designed to improve the information it receives from banks, building societies and card payment providers.
The changes form part of a wider effort to modernise the UK tax system, reduce errors and help identify income that may not have been declared correctly.
For businesses accepting card payments, earning interest or managing several income streams, the message is straightforward: accurate financial records are becoming increasingly important.
But what exactly is changing, and what should your business do about it?
2. What has HMRC announced?
HMRC already receives certain financial information from third parties, including banks and organisations that process card payments.
However, existing reporting arrangements can vary between providers.
Under the new measures, HMRC will receive more consistent information about relevant financial transactions, making it easier to compare third-party data with information submitted through tax returns.
The changes focus on two main areas:
Bank and building society interest: Improved reporting of interest paid to customers, helping HMRC identify taxable interest income and match it to the appropriate taxpayer.
Card payment transactions: More consistent information from payment providers about relevant transactions processed on behalf of businesses.
These changes are scheduled to take effect from 6 April 2028.
Although that may seem some way off, the announcement reinforces the importance of maintaining reliable financial records today.
Your financial data. A clearer picture for HMRC.
Two key areas of financial reporting are changing.
Bank interest
More consistent reporting of interest income by banks and other financial institutions.
Card payments
Improved information about relevant transactions processed on behalf of businesses.
4. Why is HMRC making these changes?
HMRC says the reforms are designed to help taxpayers get their tax affairs right the first time.
By improving the quality of financial information it receives, HMRC hopes to reduce errors, simplify tax administration and identify discrepancies more effectively.
There is also a compliance benefit.
Better data can help HMRC compare information supplied by financial institutions and payment providers with figures declared in tax returns.
For example, if a business reports annual turnover that appears inconsistent with information supplied by its card payment provider, HMRC may have reason to investigate the difference.
However, a discrepancy does not automatically mean a business has done anything wrong.
Card payment totals and taxable turnover are not necessarily identical. Refunds, processing fees, timing differences and other adjustments may explain why figures differ.
The important thing is being able to demonstrate how those figures have been calculated.
5. Which UK businesses could be affected?
Although the new reporting obligations primarily apply to financial institutions and payment providers, the changes are relevant to a wide range of UK businesses.
These include retailers and hospitality businesses processing regular card transactions, online sellers using payment gateways, freelancers receiving income from multiple sources and limited companies managing business bank accounts.
Businesses with several income streams may particularly benefit from reviewing how transactions are recorded and reconciled.
For many business owners, there may be no immediate action required under the new reporting rules.
Nevertheless, ensuring financial records are accurate, complete and regularly reviewed remains an important part of good business management.
6. Does this mean HMRC can see every transaction?
Not exactly.
The announcement does not give HMRC unrestricted, real-time access to every transaction in every business bank account.
Instead, the measures improve reporting arrangements for specified categories of financial information.
HMRC will receive more consistent information about relevant card payments and interest income, but this should not be confused with continuous monitoring of every business transaction.
Nevertheless, the changes reflect the growing role of digital financial information in the UK tax system.
For business owners, this makes reliable bookkeeping and accurate tax reporting particularly valuable.
7. Five things your business should do now
The new measures may not take effect until April 2028, but reviewing your financial processes now can make managing your accounts easier and help prevent problems later.
Are your financial records ready?
Five practical steps to improve your bookkeeping and keep your financial reporting on track.
Keep your bookkeeping up to date
Record income and expenses regularly rather than leaving everything until the end of the year.
Reconcile your card payments
Check payment processor totals against bank deposits, transaction fees and refunds.
Review every income stream
Make sure online sales, services, interest and other income sources are correctly recorded.
Check your accounting software
Ensure transactions are imported, categorised and regularly reviewed for accuracy.
Speak to your accountant
Identify discrepancies early and get professional support before problems become more complicated.
Need help getting your accounts in order?
Zyla Accountants can help you maintain accurate records, manage bookkeeping and stay on top of your tax reporting obligations.
Speak to Zyla Accountants →9. How does this relate to Making Tax Digital?
The latest HMRC announcement is part of a broader move towards a more digital UK tax system.
Making Tax Digital (MTD) already requires VAT-registered businesses to maintain digital records and submit VAT returns using compatible software.
MTD for Income Tax is also being introduced in stages for qualifying sole traders and landlords.
Although the new third-party reporting measures are separate from Making Tax Digital, both developments reinforce the importance of maintaining accurate digital financial records.
For small businesses, adopting good bookkeeping practices now can make future reporting requirements easier to manage.
10. Could inaccurate records lead to an HMRC enquiry?
Inaccurate financial records can increase the risk of mistakes in tax returns, and discrepancies may prompt HMRC to ask questions.
However, differences between card payment data and reported turnover do not necessarily indicate undeclared income.
Refunds, transaction fees, timing differences and other accounting adjustments may explain why figures do not match.
The important thing is being able to explain those differences with appropriate supporting records.
Good bookkeeping creates a clear record of transactions and helps demonstrate how figures reported to HMRC have been calculated.
It also gives business owners a clearer understanding of their financial performance.
11. How Zyla Accountants can help
At Zyla Accountants, we understand that running a business involves far more than keeping track of receipts and submitting tax returns.
Business owners need reliable financial information, confidence in their reporting and professional support when tax requirements change.
Our UK accounting services include bookkeeping, VAT returns, year-end accounts, payroll and Virtual Finance Director support.
Whether you're a sole trader, an established limited company or a growing business, having the right accounting support can save time, reduce uncertainty and help you make better financial decisions.
12. Are your business records ready?
HMRC's latest announcement is another reminder that financial reporting is becoming increasingly data-driven.
The new measures do not introduce an immediate change to how businesses submit their tax returns, but they highlight the importance of maintaining accurate and complete records.
The best time to identify bookkeeping problems is before they affect your tax reporting.
If you're concerned about the accuracy of your accounts, struggling to keep up with bookkeeping or simply want greater confidence in your financial records, Zyla Accountants can help.
Contact Zyla Accountants UK today to discuss your bookkeeping, tax and accounting requirements.
Source: HM Revenue & Customs, November 2026 announcement on improved third-party financial data reporting.