Sole traders turn to AI for tax and accounting advice

New research from Starling Bank has revealed sole traders’ growing reliance on AI for financial advice.

A quarter (26 per cent) have used an AI platform for guidance on HMRC’s new 'Making Tax Digital' initiative, while one in five regularly use it for tax and accounting support. The vast majority said they trust advice from AI (88 per cent), with 55 per cent expecting to rely on it more in the year ahead. 

Speed of information is the top reason sole traders are choosing AI (39 per cent), ahead of concerns about the cost of professional advice (32 per cent). Many are embracing AI to help with low-level, day-to-day financial tasks while still using human advisers for more complicated problems. In about a quarter of cases (26 per cent), sole traders are turning to AI for a second opinion on the advice they’ve been given. 

Daniel Hogan, director of business tools at Starling, said: “These findings are a call to action for all those who work with sole traders, showing that we need to find faster and more convenient ways to deliver the support they need.

“At Starling, we’re committed to playing our part with digital tools that help sole traders blast through their admin, leaving them more time to grow their businesses and to manage complex issues with their professional advisers.”

Making Tax Digital for income tax began on 6 April 2026, requiring self-employed individuals and landlords with qualifying income over £50,000 to use compatible software for digital record-keeping and quarterly reporting to HMRC. 

Starling recently launched a free accounting software package, which includes its HMRC-recognised ‘Making Tax Digital for Income Tax’ tool. As well as managing their tax reporting directly through Starling, sole traders can categorise transactions as they happen and see a real-time picture of their finances. 

www.starlingbank.com

Pictured: Daniel Hogan