Starling Bank launches free ‘Making Tax Digital’ tool to help sole traders
- By editor
- 2 hours ago
- 2 min read
Starling Bank has made its ‘Making Tax Digital’ income-tax tool available to business customers for free, ahead of new HMRC rules coming into force on 6 April.
Sole traders and landlords turning over more than £50,000, who will be the first cohort required to start making quarterly tax reports online, can now start getting used to the tool as part of their regular accounting practice. It is also available for sole traders with lower turnovers.
The new tool is integrated into Starling bank accounts, meaning customers can submit tax updates to HMRC instantly without having to log into third-party software. It is also part of a refreshed accounting-software proposition that is replacing Starling’s ‘business toolkit’.
Daniel Hogan, director of business tools at Starling, said: “Small businesses have a million things on their mind, so that’s why we focus on helping make managing their money easier.
“Our free Making Tax Digital and accounting tools enable businesses to keep on top of bookkeeping and tax management straight from their bank account. Our customers don’t have to pay or shop around to adapt to the new Making Tax Digital rules; we’ve created a fully integrated solution for them.”
Jennifer Staves, deputy director, software partnerships, Making Tax Digital, HMRC, commented: “Making Tax Digital for income tax will help people keep clearer records throughout the year and reduce the stress that often comes, towards the self- assessment deadline.
“From April 2026, sole traders and landlords with a turnover of more than £50,000 from self-employment and property will be required to use HMRC‑recognised software, which supports accurate record‑keeping and helps them get their tax right first time."
Starling Accounting has two plans available: ‘Essentials’ and ‘Plus’. Essentials is free and suited to sole traders, landlords and small businesses. It includes the free Making Tax Digital for income tax tool. Plus is for VAT-registered businesses. It costs £7 per month until April 2027, then £14 per month after that. It has all the features of Essentials, as well as the ability to calculate and submit VAT returns directly to HMRC.
Pictured: Daniel Hogan
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