Banks and card acquirers face standing HMRC data reports from 2028

Banks, building societies, electronic lending operators and merchant acquirers must report customer interest and card-sales data to HMRC on a standing basis.Legislation The Data-gathering (Ongoing Data: Interest and Payment Card Transactions) Regulations 2026Legislation replace the present system of repeated annual data notices with permanent reporting obligationsLegislation. They were made on 2 November 2026, laid before the House of Commons on 3 November 2026, and come into force on 1 March 2028Legislation. They are the first use of the regulation-making powers in Schedule 23 to the Finance Act 2026; Schedule 23 to the Finance Act 2011 remains in place for other data and ad hoc requests.

Relevant financial institutions, meaning financial institutions and electronic lending system operators that fall within paragraph 12 of Schedule 23 to the Finance Act 2011Legislation, must file annual data for each tax year beginning with the tax year 2028-29, and quarterly data for each quarterly data period beginning with the period ending 5 July 2028 (or in each case the year or period in which the institution first falls in scope, whichever is later)LegislationLegislation, in each case no later than 21 days after the end of the year or period. Annual data covers interest other than current and savings account interestLegislation; quarterly data covers interest on current and savings accountsLegislation, with quarterly periods running 6 April to 5 July, 6 July to 5 October, 6 October to 5 January and 6 January to 5 April. Relevant merchant acquirers, meaning acquirers resident in the United Kingdom for the purposes of corporation tax, or falling within section 5(2)(b) of the Corporation Tax Act 2009 by reason of that activity, must file monthly card-sales data for each month from April 2028Legislation, no later than 21 days after the month endsLegislation.

The schedules specify the data: totals paid, currency, tax withheld, frequency, account details and recipient identity including national insurance numbers for interest; transaction details, retailer identifiers and retailer contact, VAT and company or national insurance numbers for card sales. Excluded are ISAs, registered pension schemes, child trust funds, interest paid to non-residents and, for non-current-account interest, amounts paid to non-individuals.Legislation

Data must be filed in the form HMRC specifies by noticeLegislation, with HMRC-specified verification before filing; missing identifying information must be pursued with reasonable efforts and supplied once obtainedLegislation. Records must be preserved for five years.Legislation Providers must notify HMRC in advance of reportingLegislation, and a cessation procedure with a final filing within 21 days applies on leaving scopeLegislation.

The change ends a manual, resource-intensive notice cycle in which HMRC sends more than 550 interest notices a year covering about 130 million accounts and more than 100 card-acquirer notices yielding around 20 million lines of data. Interest data will feed expanded Pay-As-You-Earn coding of interest income, prepopulation of interest in Self Assessment returns, and compliance and debt work; card-sales data lets HMRC identify and automatically register unregistered taxpayers, addressing part of the 2.2 billion hidden-economy tax gap. A draft-instrument consultation from 20 July to 20 August 2026 drew 10 responses and led to a clearer financial-institution definition and the extension of the filing deadline from 14 to 21 days. The measure is stated to have no impact on small or micro businesses, charities or voluntary bodies.Legislation

Legal basis: the regulation-making powers in paragraphs 1, 2, 3, 5 and 22 of Schedule 23 to the Finance Act 2026Legislation, under which the Data-gathering (Ongoing Data: Interest and Payment Card Transactions) Regulations 2026 (2026 No. 1152) impose the standing reporting duties.