SumUp, a global FinTech company, has announced the launch of a free Making Tax Digital for Income Tax (MTD) accounting solution embedded directly within its platform, powered by Sage, a leader in accounting, financial, HR and payroll technology for small and medium-sized businesses.
The new offering arrives just weeks before the UK government’s MTD for Income Tax rules come into force on 6 April 2026, which will require sole traders earning over £50,000 annually to record income and expenses digitally and submit quarterly tax reports to HMRC, replacing the traditional self assessment process.
The solution is built on Sage’s embedded accounting technology and transforms the payments, invoice, expense and banking data already captured within the SumUp ecosystem — including cash transactions — into compliant MTD for Income Tax submissions.
Unlike bank-led alternatives that only track digital transfers, the new tool automatically captures all revenue streams without requiring manual input. Sole traders will also benefit from real-time income and expense categorisation, a clear framework for quarterly HMRC submissions, real-time tax liability estimates to support cash-flow planning, and the ability to file directly to HMRC from within the SumUp web interface.
New users can additionally import historical bank data to ease the transition to digital reporting.
SumUp SVP global banking Felix Lamouroux said, “At SumUp we are committed to building a world where every merchant can thrive. Merchants don’t start a business for the administrative side of things, yet they are increasingly having to adapt to stay on top of new regulations. We already have the data that is required for tax assessment purposes; our payments services integrate seamlessly with our point-of-sale systems, and together with our invoicing solution, provide our merchants with detailed income data.
“Our expense management and business account products provide a detailed overview of all business costs. This puts us into a unique position to help our merchants comply with MTD for Income Tax effortlessly and at no extra cost. With Sage as a technology partner, and their innovative embedded accounting built into SumUp, we can offer our merchants a trusted accounting and tax compliance proposition that benefits from Sage’s deep industry expertise and is credible from day one.”
Sage SVP, FinTech & embedded services Gordon Stuart said, “Making Tax Digital for Income Tax represents a significant shift for sole traders, and too many are still unprepared for the change ahead. By embedding Sage’s accounting and tax capabilities, including AI powered autocategorisation of transactions, directly into the SumUp interface and experience, we’re removing complexity where small businesses already manage their money.
“This collaboration brings income tax reporting into everyday workflows, helping sole traders stay on top of their obligations without needing specialist knowledge or additional software. It’s a clear example of how embedded accounting technology can meet small businesses where they are and make compliance simpler, more intuitive and more accessible.”
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