Does HMRC use open banking?
HMRC does not currently use open banking to access taxpayers’ bank accounts directly. Open banking requires explicit consumer consent, which HMRC does not seek. However, HMRC does have separate legal powers under the Finance Acts and Tax Management Act to request financial information from banks directly — without open banking — in cases of suspected tax evasion or fraud.
What financial information can HMRC access from banks?
HMRC can request bank account information from financial institutions through formal information notices under existing tax legislation. This is separate from open banking and does not require your consent. HMRC also receives data automatically from banks on interest earned on savings accounts above a certain threshold, and from payment processors on income received by self-employed individuals and businesses.
Is open banking used in tax reporting or Making Tax Digital?
Open banking is not yet formally integrated into HMRC’s Making Tax Digital (MTD) programme, but several accounting software providers — such as Xero and QuickBooks — use open banking APIs to automatically import bank transactions into MTD-compatible accounts. This simplifies bookkeeping and tax filing for self-employed individuals and small businesses, though the connection is made at the software level rather than directly with HMRC.
Open Banking in Practice: HMRC has been exploring digital and data-led approaches to compliance through its Connect system, which analyses third-party data including from Companies House and Land Registry. While open banking data is not currently fed into Connect, the government’s broader data strategy may incorporate financial data sharing in future. Read our analysis of open banking and tax compliance on openfuture.world.
FAQ
Can HMRC see my Monzo or Revolut account?
Not via open banking — HMRC would need to issue a formal information notice to the bank directly, which requires legal grounds such as a tax investigation.
Does open banking affect my tax return?
Not directly — but accounting apps that use open banking to import transactions can make your self-assessment or VAT return more accurate and easier to file.
Is it safe to connect my business account to open banking for accounting?
Yes — connecting via an FCA-regulated AISP is secure; your login credentials are never shared, and you can revoke access at any time.