Starling Bank has launched its Making Tax Digital for Income Tax tool ahead of April’s rule changes, offering sole traders and landlords a free way to get used to quarterly reporting before the new system becomes mandatory for the first group of affected taxpayers.
The HMRC-recognised tool is now live for Starling business customers and is integrated directly into the bank’s accounts, allowing users to submit tax updates to HMRC without relying on third-party software. The launch also coincides with an upgrade to the bank’s bookkeeping and tax software, with Starling’s refreshed Accounting proposition replacing Business Toolkit.
Under the new rules, from 6 April 2026 sole traders and landlords with turnover above £50,000 will be required to keep digital records and submit quarterly updates using compatible software. Starling said the tool is also available to sole traders below that threshold, giving smaller operators the option to adopt the process early. Alongside tax submissions, users can categorise transactions as they happen and view their finances in real time. Accounting Essentials is free, while Accounting Plus, which adds VAT record-keeping and VAT submissions, costs £7 a month.
Daniel Hogan, Director of Business Tools at Starling, said: “At Starling, we know that small businesses have a million things on their mind, so that’s why we focus on helping make managing their money easier. Our free Making Tax Digital and Accounting tools enable businesses to keep on top of bookkeeping and tax management straight from their bank account. Our customers don’t have to pay or shop around to adapt to the new Making Tax Digital rules; we’ve created a fully integrated solution for them.”
The launch speaks to a wider shift in the small business market as tax compliance moves further into day-to-day software. For banks, that creates an opportunity to pull bookkeeping, filing, and cash management into the same workflow. For sole traders, the immediate value is practical: fewer systems, fewer handoffs, and more time to adapt before the reporting timetable begins.
Further details are available on Starling Bank’s Making Tax Digital page.
