Digital bank Monzo is launching a new tax reporting tool for its business customers ahead of new requirements coming into place later this year.
The Making Tax Digital (MTD) for Income Tax changes, coming into effect in April, will require sole traders and landlords to use approved software to submit income and expense information to HMRC quarterly.
According to research from Monzo, small businesses in the UK invest almost £5bn a year in tax and accounting software. The bank said its new, free tool, which has been recognised by HMRC, will make following the MTD requirements simpler and more accessible.
“Making Tax Digital for Income Tax will help people keep clearer records and get their tax right,” said Jennifer Staves, deputy director of strategic design for MTD, at HMRC.
“Using software which has been recognised and approved by HMRC will make it easier for sole traders and landlords to meet the new requirements and be ready ahead of April 2026.”
Monzo’s new tool is powered by British accounting software group Sage and will be made available ahead of the new tax year.
“Making Tax Digital is designed to make tax simpler, but we know many sole traders feel overwhelmed by what these changes mean for them,” said Jordan Shwide, general manager at Monzo Business.
“By launching a free, HMRC-recognised tax tool, in partnership with Sage, we’re making it easier for sole traders to send tax updates straight from their bank account, so they can feel stress-free and confident in April.”
