HSBC UK and Sage Launch Digital Tax Tool for Small Businesses Ahead of MTD Deadline

Event summary

  • HSBC UK and Sage have launched My Business Finances, a digital tax reporting tool for small businesses, ahead of the UK's Making Tax Digital (MTD) deadline on April 6, 2026.
  • The tool, powered by Sage's embedded technology, allows sole traders and landlords to manage accounting and submit tax returns directly from their HSBC UK business banking account.
  • Sage research shows 70% of sole traders are unprepared for MTD, with many still using pen and paper or spreadsheets for tax reporting.
  • HSBC UK has also introduced a no monthly account fee for its Small Business Banking Account and offers a free Small Business Growth Programme.

The big picture

The partnership between HSBC UK and Sage reflects the growing trend of banks integrating fintech solutions to support small businesses with regulatory compliance. As the UK's tax system becomes fully digital, such tools are becoming essential for helping small businesses manage their finances efficiently. The collaboration also highlights the increasing importance of embedded fintech services in the banking sector, enabling banks to offer more comprehensive support to their small business customers.

What we're watching

Adoption Pace
How quickly small businesses will adopt the new tool ahead of the MTD deadline, given the current low readiness levels.
Competitive Response
Whether other banks and fintech providers will introduce similar integrated tax reporting solutions.
Regulatory Impact
The extent to which the tool will simplify compliance for small businesses under the new MTD requirements.

Related topics

Fintech