HSBC UK and Sage have jointly launched a new tax reporting tool for small businesses in preparation for the introduction of new Making Tax Digital (MTD) requirements.
Coming into effect in April, the new requirements will mean sole traders and landlords will have to regularly submit income and expense information to HMRC using approved software.
The new HSBC UK tool, powered by Sage’s embedded technology, will allow eligible customers to manage accounting and submit tax returns digitally directly from their business bank account.
“Small businesses are often incredibly ambitious but generally short on time. As a leading and trusted SME banking partner, we’re always looking at where owners can be more efficient so they can focus on growing their business,” said Tom Wood, head of SME business banking at HSBC UK.
“Tax compliance can be both time-consuming and costly – HSBC My Business Finances will take care of a business’ invoicing, accounting and tax compliance all in one place. This is especially useful ahead of new tax reporting requirements in April.”
The tool comes following research from Sage that has found that as much as 70% of sole traders are not ready for the new requirements.
“Small businesses and sole traders want to focus on doing what they do best, without the burden of complex admin,” said Gordon Stuart, SVP of fintech and embedded services at Sage.
“By embedding Sage’s trusted accounting and tax capabilities directly into HSBC UK’s business banking account, we’re making managing finances effortless and accessible. Powered by our embedded accounting technology, HSBC UK can deliver trusted accounting and tax in one unified experience, within the tools business owners already use every day.”
Earlier this month Monzo announced the launch of its own MTD tool.
