Monzo is set to introduce a new tool to simplify Making Tax Digital (MTD) submissions for business owners and landlords. With the promise of being able to file your quarterly tax return directly to HMRC, all in the app.
Sole traders and landlords with a trading income over £50,000 need to start filing their tax returns online from April 2026. And this means using a piece of HMRC-approved accounting software to do it.
The Making Tax Digital roll-out is bringing on a wave of new tax tools that claim to simplify the tax process. So why are some accountants skeptical about these new tools? And will Monzo’s solution work for your small business?
Monzo’s all-in-one tax tool
Launching in partnership with Sage, Monzo is releasing a tool to their banking app that looks to simplify tax returns ahead of the transition to MTD. It lets business owners and landlords report to HMRC directly from the app.
The biggest adjustment for businesses complying with MTD is filing a tax return quarterly, rather than yearly. Monzo’s new tool promises to reduce the burden of regular reporting with features that help you track your business spending.
Some of the key benefits include:
- banking and accounting in one place – you can track your money, pay bills, and run your business finances all in the app
- simplified tax – features like categorising your spending, attaching receipts, and setting aside money for tax bills help you prepare for your tax return
There’s currently a waiting list for the tool and you need to have a Monzo business account to apply.
The Self Assessment process is complex, so the idea of being able to file your tax return directly to HMRC from your banking app could have significant appeal for the self-employed. It could save business owners and landlords time and money by giving them a centralised place for their tax return.
Wave of accounting tools on the way?
Monzo isn’t the only one banking on the potential for accounting tools. Because digital filing will be mandatory (except for those with an exemption) for most people from April 2027, accounting software will become more crucial.
Our data showed most landlords (68%) feel unprepared for MTD. And recent government figures say almost three million self-employed people will need to transition to MTD.
Starling, Tide, and Barclays have all taken steps to improve their accounting capabilities within their bank accounts. These banks know that many more small business owners and landlords will need to find software in the future.
Skepticism about all-in-one solutions?
As the MTD changes come in and we see different software solutions being developed, it’s important to always do your own research to find the best tool for your business. There’s likely going to be lots of companies that promise easy solutions, but any software you use must be approved by HMRC and suitable for your tax responsibilities.
Read more: the best self-employed accounting software for 2025
And remember, the responsibility for filing your tax return correctly falls on you. So if you’re using a new piece of software, like Monzo’s all-in-one tool, make sure you check all the information you submit is correct.
More guides for small business owners
- Is professional indemnity insurance tax deductible?
- How to do a Self Assessment tax return online
- Small business tax changes: new thresholds, rates, and allowances
- How to write an invoice and free template
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