Draft legislation: Better use of new and improved third-party data

For compliance teams, this means preparing for enhanced data submission requirements that may necessitate system upgrades and closer alignment with HMRC's data standards. The consultation seeks views on how to improve data quality, which could lead to more automated and accurate tax reporting, reducing manual intervention and errors. Firms should review their current data capture and reporting processes for interest income and card transactions, assess gaps against potential new standards, and consider participating in the consultation to shape the final rules.

Early engagement will help mitigate compliance costs and ensure readiness for any mandated changes. The consultation period offers a window to influence the scope and timing of implementation, which could affect both operational processes and technology investments.