Monzo, the digital bank serving business customers, is helping simplify tax filing for sole traders and landlords with a new tool that lets them file directly to HMRC from their Monzo Business bank account. Built in partnership with Sage, the tool is designed to help sole traders and landlords comply with the upcoming “Making Tax Digital for Income Tax legislation.”
Making Tax Digital is an HMRC-led initiative that will require sole traders and landlords to keep digital records and “submit quarterly tax updates to HMRC, using approved software.”
Sage research shows that almost half of sole traders are unaware or don’t know much about Making Tax Digital, while “over half of those that are aware, fear the administrative burden of submitting quarterly updates.”
Monzo’s tool is designed to prepare sole traders and landlords for the changes and help “reduce the complexity and cost of tax compliance.”
Monzo’s tax filing tool is powered by Sage Embedded Services technology, which enables banks, fintechs and software platforms to “build accounting and other capabilities directly into their products.”
By embedding Sage technology into platforms like Monzo, Sage is responding to a demand from small businesses for solutions that work within the apps they use every day.
Monzo was founded in 2015 and serves various customers, including 700,000 businesses.
With a mission to make money work for everyone, Monzo is a UK-regulated bank known for features like the Gambling Block, Call Status, Added Security, Tax Pots, and the 1p Saving Challenge.
