Monzo, the digital bank with over 700,000 business customers, is helping to simplify tax filing for sole traders and landlords with a new tool that lets them file directly with HMRC from their Monzo Business Bank account.
Built in partnership with Sage (FTSE:SGE), a leader in accounting, finance, HR and payroll technology for small and medium-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. Rishi research shows that almost half (49%) of sole traders are still unaware or do not know much about digitizing taxes, while more than half (55%) of those who are aware fear the administrative burden of submitting quarterly updates. Monzo’s simple and intuitive tools are designed to help sole traders and landlords prepare for the changes and reduce the complexity and cost of tax compliance.
Main Benefits:
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easy to use. It’s tax filing, the Monzo way – extremely simple and done in just a few taps.
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Filing directly to HMRC. By incorporating Sage’s innovative and trusted technology, Monzo will connect customers directly to HMRC, so there is no need for separate software.
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At one place. Clients will be able to file taxes in the same place they already track their money, pay bills and run their business finances – no toggling between tools or juggling spreadsheets.
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Simplified tax management. The tool complements Monzo Business’ other simple tax features, like categorizing expenses on the go, attaching receipts, and setting aside money for tax bills – so clients can prepare, save, and file taxes sooner in one place.
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Clear, simple steps. Waitlisted customers will receive clear, bite-sized explainers, deadlines and reminders to help them prepare to go digital.
“Managing taxes is one of the biggest headaches for sole traders and landlords.” said Jordan Schweid, general manager of business banking at Monzo. “That’s why we’re simplifying tax filing with a built-in tool, powered by Sage, that lets customers file with HMRC directly from their Monzo Business Bank account. This is another step in building an app that helps small and growing businesses confidently manage all 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 build accounting and other capabilities directly into their products.
By embedding Sage technology directly into trusted platforms like Monzo, Sage is responding to small businesses’ growing demand for simple, all-in-one solutions that work within the apps they already use everyday.
“For small businesses, tax can seem complicated, but through our embedded accounting technology and our partnership with Monzo we are making tax compliance simple and seamless right inside the app they already use to run their finances,” said Gordon Stuart, SVP, Operations, Fintech and Embedded Services, Sage. “This collaboration is a clear example of Sage Embedded Services in action, meeting customers where they are and enabling partners to provide reliable services across the tools that business owners already use every day.”
The waiting list for Monzo’s built-in tax filing tool powered by Sage is opening today, with a 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.