// INTELLIGENT TECHNOLOGY //
Monzo Business simplifies tax filing with new tool
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WITH MAKING TAX DIGITAL COMING SOON, WE WANT TO MAKE SURE PEOPLE FEEL SUPPORTED – NOT OVERWHELMED.
by categorising transactions, tracking income and expenses in real-time and making it easier to prepare for tax, all in one place. By reducing manual admin and removing the need to juggle spreadsheets or paperwork, Monzo is helping sole traders feel more confident and better prepared for MTD – freeing up time for what matters most.
W ith HMRC’ s Making Tax Digital( MTD) for Income Tax changes coming into effect on April 6, new research from Monzo Business reveals sole traders spend an average of 27 hours a year on tax admin – more than three full working days. The digital bank, which supports over 800,000 business customers, is helping make this shift easier for sole traders with a new free built-in tax tool, powered by Sage’ s embedded accounting technology, freeing up time for more tea breaks and less stress.
Under the new MTD rules, sole traders and landlords will need to use approved digital systems to submit quarterly income and expenses updates. As the new tax year is around the corner, 70 % of surveyed sole traders say they’ re aware of MTD. However, 28 % aren’ t confident their business will be ready, and 69 % don’ t currently pay for any digital tools to help with their taxes.
Time is precious for Britain’ s smallest businesses, yet more than half( 54 %) of surveyed sole traders spend two hours or more each month on tax admin alone, adding up to an average of 27 hours a year. Based on the UK’ s 2026 minimum wage, that time costs the average sole trader around £ 343 annually.
Brits are known for loving a‘ cuppa’, so it’ s no surprise that almost nine in 10( 88 %) say they take a hot drink break during the work day. Based on the average sole trader tea or coffee break lasting 11.7 minutes, those 27 hours on tax admin add up to 138 missed drink breaks a year. And when it comes to what’ s in the mug, coffee is the clear favourite, chosen by over three in four( 77 %) small business owners as their regular hot drink, followed by black tea( 44 %) and hot chocolate( 43 %).
Monzo Business helps sole traders stay on top of their finances year-round
“ Sole traders already work incredibly hard, often at the expense of their own time and wellbeing. With Making Tax Digital coming soon, we want to make sure people feel supported – not overwhelmed,” said Jordan Shwide, General Manager at Monzo Business.“ By building a simple tax tool directly into everyday business banking, we’ re helping sole traders save hours of admin each month. That means less stress, fewer late nights and maybe even time for an extra coffee break or two.”
More than half( 52 %) of sole traders surveyed say managing business taxes and accounting is stressful and nearly half( 44 %) admit they’ ve submitted a tax filing late because the process felt too confusing or time-consuming. Monzo Business’ free HMRC-recognised tax tool, powered by Sage, will be fully available before the new tax year starts on April 6. The tax tool is available to use on all free and paid Monzo Business account plans. �
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