UK-based digital bank Starling has made its proprietary Making Tax Digital (MTD) for Income Tax tool freely available to business customers, ahead of new HMRC requirements that come into force on 6 April 2026. The tool is fully integrated within Starling’s business bank accounts, enabling customers to submit quarterly tax updates directly to HMRC without relying on third-party software.
The move is timed to give sole traders and landlords time to familiarise themselves with the new compliance workflow before the deadline. From April 2026, sole traders and landlords with annual turnover exceeding GBP 50,000 from self-employment or property income will be legally required to use HMRC-recognised software to maintain digital records and submit quarterly updates. Starling’s solution has received HMRC recognition and covers this first cohort of mandated users, while also being accessible to sole traders with lower turnovers who may wish to adopt MTD reporting ahead of their own mandatory deadline.
Integrated accounting proposition
The MTD tool forms part of a broader refresh of Starling’s business offering, replacing the bank’s existing ‘Business Toolkit’ with a redesigned ‘Accounting’ proposition. The updated suite has two tiers: ‘Accounting Essentials’, which is provided free of charge and allows customers to categorise transactions in real time, view a live overview of their finances, and submit MTD tax updates to HMRC; and ‘Accounting Plus’, available for GBP 7 per month, which additionally supports VAT record-keeping and direct VAT return submission to HMRC.
Because the tools are natively embedded within the Starling app, customers do not need to export data or maintain a separate accounting login. Transactions can be categorised as they occur, with tax submissions generated from the same interface used for everyday banking.
Regulatory context and industry implications
Making Tax Digital for Income Tax represents one of the most significant changes to the UK’s self-assessment tax framework in recent years. HMRC has designed the programme to digitise income tax record-keeping and shift reporting from an annual model to a quarterly one, to reduce errors and improve accuracy. Following the April 2026 mandate for those with turnover above GBP 50,000, the requirement is expected to extend to those earning above GBP 30,000 in April 2027, and to all remaining sole traders and landlords above the GBP 20,000 threshold at a later date.
For small business banking, Starling’s decision to offer the compliance tool at no cost positions it in contrast to many standalone accounting software providers that charge recurring subscription fees. By embedding MTD functionality directly within the bank account, Starling is consolidating the compliance and banking workflows into a single product, which may influence how other banks and fintech providers approach similar regulatory transitions.
