HSBC UK and Sage simplify tax reporting for small businesses ahead of Making Tax Digital
LONDON, Jan. 29, 2026 /PRNewswire/ -- As part of HSBC UK's big support for small businesses, the bank is launching a new tool to help business owners and sole traders get ahead of the Government's Making Tax Digital for Income Tax (MTD) changes coming in April1.
Powered by Sage's embedded technology2, HSBC UK's My Business Finances will allow eligible customers to manage accounting and submit tax returns digitally directly from their HSBC UK business banking account, reducing the complexity many small business owners face as MTD approaches.
Sage research shows that seven in ten (70%) sole traders are not ready for Making Tax Digital with a third still tracking income and expenses using pen and paper and two thirds relying on spreadsheets to complete their Self-Assessment returns.3
This partnership is designed to address this readiness gap ahead of MTD, offering practical support to help customers stay compliant, save time, and remain in control of their finances as the tax system becomes fully digital. Through My Business Finances, customers will be able to manage their accounting and invoicing from inside their HSBC UK business account, without the need to switch between apps or platforms.
Tom Wood, Head of SME Business Banking, HSBC UK, said: "Small businesses are often incredibly ambitious but generally short on time. As a leading and trusted SME banking partner, we're always looking at where owners can be more efficient so they can focus on growing their business.
"Tax compliance can be both time-consuming and costly - HSBC My Business Finances will take care of a business' invoicing, accounting and tax compliance all in one place. This is especially useful ahead of new tax reporting requirements in April."
Gordon Stuart, SVP, Fintech & Embedded Services, Sage, said: "Small businesses and sole traders want to focus on doing what they do best, without the burden of complex admin.
"By embedding Sage's trusted accounting and tax capabilities directly into HSBC UK's business banking account, we're making managing finances effortless and accessible.
"Powered by our embedded accounting technology, HSBC UK can deliver trusted accounting and tax in one unified experience, within the tools business owners already use every day."
This is the latest in a raft of support measures for small businesses banking with HSBC UK. In July 2025 the bank introduced a no monthly account fee on its Small Business Banking Account to accompany free UK digital banking and free access to Business Specialists.
The bank also runs the HSBC Small Business Growth Programme – a free, open-to-all platform offering training, events and expert insights designed to give entrepreneurs the tools to grow and succeed. Find out more here: HSBC Small Business Growth Programme: tools for success.
The new My Business Finances tool will first be available to sole traders and landlords ahead of the Making Tax Digital changes.
Visit www.business.hsbc.uk/en-gb/products/accounting for more information and to register your interest.
Notes to Editors
1 From 6 April 2026, HMRC is requiring sole traders and landlords to report their income and expenses via Making Tax Digital if their annual income from self-employment and property is over £50,000.
2 Sage Embedded Services is a modular suite of headless APIs designed for banks, fintechs, and software platforms, enabling these organisations to seamlessly integrate Sage's accounting, financial, HR, and payroll technology inside their existing products. This allows platforms to provide their customers with essential financial tools without the complexity or cost of developing their own solutions from scratch, enhancing user experience and streamlining financial operations for small and medium-sized businesses (SMBs).
Find out more here: https://www.sage.com/en-gb/sage-embedded-services/
3 Research conducted by IPSE on behalf of Sage in September 2025 among 1,000 UK sole traders. The study, titled From spreadsheets to software: Supporting sole traders through Making Tax Digital for Income Tax, explored awareness of and readiness for Making Tax Digital for Income Tax.
Find out more here: https://www.sage.com/en-gb/company/digital-newsroom/2025/12/supporting-sole-traders-through-making-tax-digital-for-income-tax/
About HSBC UK
HSBC UK serves over 15 million active customers across the UK, supported by 23,800 colleagues. HSBC UK offers a complete range of retail banking and wealth management to personal and private banking customers, as well as commercial banking for small to medium businesses and large corporates. HSBC UK is a ring-fenced bank and wholly-owned subsidiary of HSBC Holdings plc.
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 57 countries and territories. With assets of US$3,234bn at 30 September 2025, HSBC is one of the world's largest banking and financial services organisations.
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.
Contact:
Tilson Pinto
Axicom
tilson.pinto@axicom.com
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