Now in effect from the 2025–2026 tax year HMRC has fundamentally changed how it collects and uses taxpayer data which means more granular data, cross-matching, earlier risk identification and more targeted investigations. HMRC says the objective is to improve data quality, support compliance and create a more resilient tax system.
That may be true but from a practical perspective however it also means increased scrutiny. Self-employed individuals must now report start and cessation dates within Self-Assessment returns. Employers have to provide detailed information on hours worked through RTI PAYE submissions and owner-managed business shareholders must separately disclose their percentage shareholding together with dividends from their own company and any other sources. The dividend transparency changes are particularly significant. HMRC now have clearer visibility over how profits are extracted and whether reported income aligns with corporate filings.
Why This Matters
We are now in an era of integrated, real-time, cross-referenced data collection. Businesses may not yet appreciate the importance of the changes and may require help to understand what is required to protect them later on. Now is the time to be reviewing compliance requirements and internal reporting processes.