As part of HSBC UK's comprehensive support for small businesses $HSBA (+0,61%) the bank is launching a new tool to help business owners and sole traders prepare for the government's Making Tax Digital for Income Tax (MTD) changes coming into force in April.
Using Sage2's integrated technology, HSBC UK's My Business Finances allows eligible customers to manage their accounts and submit tax returns digitally directly from their HSBC UK business account, reducing the complexity that many small business owners are facing with the introduction of MTD.
A study by Sage $SGE (+0,16%) shows that seven in ten (70%) sole traders are not prepared for Making Tax Digital. A third continue to record income and expenses using pen and paper, and two thirds rely on spreadsheets to prepare their tax returns.3
This partnership aims to bridge that gap ahead of MTD, providing practical support for clients to help them stay compliant, save time and stay in control of their finances as the tax system goes fully digital. Through My Business Finances, clients can manage their accounting and invoicing through their HSBC UK business account without having to switch between apps or platforms.
Tom Wood, Head of SME Business Banking at HSBC UK, said: "Small businesses are often incredibly ambitious but typically short on time. As a leading and trusted banking partner for SMEs, we're always looking for ways to help entrepreneurs work more efficiently so they can focus on growing their business.
Tax compliance can be both time consuming and costly - HSBC My Business Finances takes care of a company's invoicing, bookkeeping and tax compliance all in one place. This is particularly useful in light of the new tax reporting requirements in April."
Gordon Stuart, SVP, Fintech & Embedded Services, Sage, said: "Small businesses and sole traders want to focus on what they do best without having to deal with complex administrative tasks.
By integrating Sage's proven accounting and tax capabilities directly into HSBC UK's business account, we're making financial management effortless and accessible.
Our integrated accounting technology allows HSBC UK to deliver reliable accounting and tax functionality in a unified environment, within the tools business owners already use every day."
This is the latest in a series of support measures for small businesses banking with HSBC UK.
In July 2025, the bank introduced a monthly account fee for its Small Business Banking Account to complement free digital banking in the UK and free access to Business Specialists.