UK’s Starling Bank noted in a blog post that sole traders are increasingly relying on artificial intelligence to handle tax and accounting queries. According to fresh research from UK digital bank Starling, these AI focused trends are impacting the broader financial service sector as well. And the latest survey of 1,000 self-employed individuals found that busy owners are prioritizing speed and convenience when seeking financial guidance, rather than focusing solely on cutting business operating costs.
The study shared by Starling Bank highlights a notable shift in how sole traders approach their finances amid growing administrative demands.
One in four or around a quarter of survey respondents (26 per cent) have already consulted AI tools for advice on HMRC’s updated Making Tax Digital requirements, while a fifth (20 per cent) turn to the technology regularly for broader tax and bookkeeping support.
Trust levels remain high, with 88 per cent of those surveyed expressing confidence in the guidance provided.
Over half (55 per cent) anticipate increasing their dependence on AI over the next 12 months.
Speed emerged as the leading factor driving adoption, cited by 39 per cent of participants.
This outranked worries about the expense of hiring professional help, which was mentioned by 32 per cent.
Many sole traders are using AI for straightforward, everyday tasks such as basic record-keeping or quick clarifications, while reserving human experts for more intricate matters.
Notably, around a quarter (26 per cent) also seek AI input as a second check on recommendations received elsewhere.
The research findings arrive as small businesses grapple with significant financial management burdens.
On average, SMEs allocate roughly £63,000 annually to overseeing their accounts and related obligations. While this might seem modest, it can add up quickly for SMBs who are already facing the pressures of the rising costs of doing business.
These pressures have now increased significantly with the rollout of Making Tax Digital for Income Tax, which took effect on 6 April 2026 and now requires eligible self-employed people and landlords earning over £50,000 to maintain digital records and submit quarterly updates to HMRC using approved software.
In response to this recent development, UK‘s Starling Bank has introduced a complimentary accounting platform designed specifically to ease these challenges for sole traders.
The package features a fully HMRC-approved Making Tax Digital tool, enabling users to submit tax information directly through the app.
Additional functions allow real-time transaction categorization and instant visibility into financial performance, helping users stay on top of their numbers without manual effort.
Daniel Hogan, Director of Business Tools at Starling, described the results as a prompt for the industry to innovate.
He emphasized the need for faster, more accessible support systems that free up entrepreneurs to concentrate on expanding their ventures and tackling complex issues alongside advisers.
One Starling customer, Dr Emily Durling, a clinical psychologist, shared her experience as well.
While she would not typically source tax details from AI, she found it practical for initial research on the recent Making Tax Digital updates.
For critical decisions, however, she prefers qualified professionals (as one should actually at this state of AI development).
She praised the bank’s tool for removing much of the stress associated with compliance.
Starling’s initiative forms part of a wider effort to support hardworking sole traders in the UK through intuitive digital features and immediate financial insights.
By simplifying routine business processes, the banking institution aims to help owners gain clearer oversight of their metrics, reduce time spent on admin, and channel more energy into building their businesses. But these tools by themselves won’t be enough. Proper education, relevant professional skills training, and carefully leveraging such tools will lead to improved business outcomes.