Sole traders and landlords will soon be able to file taxes directly to HMRC from their Monzo Business bank account, ahead of HMRC-led changes to the tax system
A waitlist for the tool is now open, with the product expected to launch in time for the new tax year
The tool is powered by Sage's innovative Embedded Services technology, to bring accounting and tax compliance into the platforms businesses already rely on
LONDON, Oct. 14, 2025 /PRNewswire/ -- Monzo, the digital bank with over 700,000 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 (FTSE:SGE), the leader in accounting, financial, HR and payroll technology for small and mid-sized businesses, 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 (49%) of sole traders are still unaware or don't know much about Making Tax Digital, while over half (55%) of those that are aware, fear the administrative burden of submitting quarterly updates.[1] Monzo's simple and intuitive tool is designed to prepare sole traders and landlords for the changes and help reduce the complexity and cost of tax compliance.
Key benefits:
- Easy-to-use. This is tax filing, the Monzo way - delightfully simple and done in just a few taps.
- Direct filing to HMRC. Monzo will connect customers directly to HMRC, by embedding Sage's innovative and trusted technology, so there's no need for separate software.
- In one place. Customers will be able to file tax in the same place they already track their money, pay bills and run their business finances - no toggling between tools or juggling spreadsheets.
- Simplified tax management. The tool complements Monzo Business' other simple tax features, like categorising spend on the go, attaching receipts, and setting aside money for tax bills - so customers can prepare, save for and soon file taxes, in one place.
- Clear, simple steps. Customers on the waitlist will receive clear, bite-size explainers, timelines and reminders to help them prepare for Making Tax Digital.
"Managing taxes is one of the biggest headaches for sole traders and landlords." saidJordan Shwide, General Manager, Business Banking at Monzo. "That's why we're making tax filing simple with a built-in tool, powered by Sage, that lets customers file directly to HMRC from their Monzo Business bank account. This is yet another step in building the one app that helps small and growing businesses confidently manage all of their business finances with Monzo."
Monzo's tax filing tool is powered by Sage Embedded Services technology, which enables banks, fintechs and software platforms to seamlessly build accounting and other capabilities directly into their products.
By embedding Sage technology directly into trusted platforms like Monzo, Sage is responding to a growing demand from small businesses for simple, all-in-one solutions that work within the apps they already use everyday.
"For small businesses, tax can feel complicated, but through our embedded accounting technology and our partnership with Monzo we are making tax compliance simple and seamless inside the app they already use to run their finances," said Gordon Stuart, SVP, Operations, Fintech & Embedded Services, Sage. "This collaboration is a clear example of Sage Embedded Services in action, meeting customers where they are and enabling partners to deliver trusted services in the tools business owners already use every day."
The waitlist for Monzo's built-in tax filing tool, powered by Sage, opens today, with the full launch expected in time for the new tax year when Making Tax Digital comes into effect. Customers must have a Monzo Business account to access the tool. For more information, please visit: https://monzo.com/business-banking/features/making-tax-digital
Only sole traders or limited company directors in the UK can apply. Ts&Cs apply.
About Monzo:
Monzo was founded in 2015 and now serves more than 13 million customers including 700,000 businesses. With a mission to make money work for everyone, Monzo is known for pioneering industry-first features like the Gambling Block, Call Status, Added Security, Tax Pots and the 1p Saving Challenge, co-creating with its customers to deliver products and tools that put them in control of their finances. Monzo is a fully regulated UK bank and a Which? recommended provider for current accounts.
About Sage:
Sage exists to knock down barriers so everyone can thrive, starting with the millions of Small and?Mid-Sized?Businesses?served by us, our partners and accountants. Customers?trust our finance, HR and payroll software to make work and money flow.??By digitising business processes and relationships with customers, suppliers, employees, banks and governments, our digital network connects SMBs, removing friction and delivering insights.?Knocking down barriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and the climate crisis.?
Notes to editors
Making Tax Digital
- Making Tax Digital (MTD) for Income Tax is an HMRC initiative requiring businesses and self-employed individuals to keep digital records and submit tax returns using approved software.
- Over the next three years, almost 3 million sole traders and landlords must switch to third-party digital tax tools.
- This is a phased rebuild of the UK tax system. From April 2026, sole traders and landlords earning over £50,000 will fall in scope. Those earning over £30,000 and over £20,000 will need to comply with MTD by April 2027 and April 2028 respectively.
- More information is available here.
What is Sage Embedded Services?
Sage is trusted by thousands of sole traders and small businesses across the UK. Its embedded services are a core part of Sage's strategy to meet customers where they are by bringing accounting, tax compliance and other services into platforms that small businesses already use every day. Composed of a modular suite of headless APIs, Embedded Services enables small business users to do more without ever leaving their favourite platforms. Platform partners can build quickly and flexibly to accelerate time to market, opening new revenue streams and increasing lifetime value, while reducing development complexity and costs.
To find out more, visit: https://www.sage.com/en-gb/sage-embedded-services/
[1] Sage Making Tax Digital for Income Tax Survey, 2025, conducted between 08.09.25 and 15.09.25 with 1,000 self employed /sole traders in the UK who are not registered for VAT
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