Tax can be a lot. Paperwork piles up, deadlines creep closer and keeping tabs on your to-do list feels almost impossible.
Making Tax Digital software.
It's in the bank.
Free, HMRC-recognised software built into Monzo Business as standard. Ready to set up now in time for April.
Made for sole traders and landlords. You can check it's the right fit before applying.
Only sole traders or limited company directors can apply for a Monzo Business Account. Ts&Cs apply.
The App Store and Google Play Store ratings are correct as of 27 Apr, 2026.
From tax fear to all clear
Escape extra admin. File for free, categorise transactions, attach receipts and use Pots to put money aside for tax.
Put Monzo to work. Capture digital receipts, neatly organise income and expenses and meet deadlines all from your bank.
What's Making Tax Digital for Income Tax?
It's the new way for sole traders and landlords to report income and expenses to HMRC.
You'll need to use software recognised by HMRC, like ours, to send quarterly updates and file your end of year return.
It's happening in waves from April 2026, starting with anyone with a gross income over £50,000.
Free MTD software with HMRC's seal of approval
The basics your business needs with no hidden fees.
Tap and it's with HMRC
Store digital records and send quarterly updates right from where your money is.
Leave behind all the open tabs and passwords that come with juggling different tools and integrations.
Powered by Sage
Easy banking meets proven expertise in tax and accounting. Our tool is built on Sage's innovative technology that's trusted by small businesses across the UK.
It's all built in and ready to go – no extra account needed.
All over tax admin
Categorise transactions as you spend, snap receipts on the go and pull in transactions from other accounts.
And choose to automatically put a percentage aside for tax and other big bills every time you get paid, with Tax Pots.
Tax Pots are on Pro and Team, which start from £9 a month. Ts&Cs apply.
Get up to speed
Mini lessons explain what's happening, who's affected and when. Timelines and reminders help you stay on track.
Tap and it's with HMRC
Store digital records and send quarterly updates right from where your money is.
Leave behind all the open tabs and passwords that come with juggling different tools and integrations.
Powered by Sage
Easy banking meets proven expertise in tax and accounting. Our tool is built on Sage's innovative technology that's trusted by small businesses across the UK.
It's all built in and ready to go – no extra account needed.
All over tax admin
Categorise transactions as you spend, snap receipts on the go and pull in transactions from other accounts.
And choose to automatically put a percentage aside for tax and other big bills every time you get paid, with Tax Pots.
Tax Pots are on Pro and Team, which start from £9 a month. Ts&Cs apply.
Get up to speed
Mini lessons explain what's happening, who's affected and when. Timelines and reminders help you stay on track.
Simple tax, smart banking
Why have one without the other? Some features are only available with Pro and Team, which start from £9 a month. T&Cs apply.
Did we mention it's free?
Our free business bank account comes ready for Making Tax Digital with no extra cost. Saving you money and time.
Get ahead now, avoid stress later
Making Tax Digital for Income Tax starts in April 2026. Keep time on your side.
Step
1
Tell us a bit about your business
Answer 5 questions to make sure our tool's right for you.
Step
2
Open your business account
Over 80% of business accounts are opened on the same day. Made for sole traders and landlords.
Step
3
Get tax ready
Dip into helpful lessons, categorise your transactions and submit your updates to HMRC.
Get clued up on the new rules
Everything you need to know in words you'll understand.
Join 800,000+ businesses today
That's more than half a million UK businesses already changing the way they bank. Sign up or switch to Monzo Business if you have a business account elsewhere.
Timeline: Meet the deadlines
What's happening and when.
Incomes over £50,000 start Making Tax Digital
6 April 2026 marks the start of the 2026 to 2027 tax year. And the start of MTD for the first wave of sole traders and landlords.
April 2026
The first quarterly submission
7 August 2026 is when businesses need to submit their first quarterly submission by. The next submission is due 3 months later.
August 2026
Incomes over £30,000 start Making Tax Digital
The next wave of sole traders and landlords start to report income and expenses the new way.
April 2027
Incomes over £20,000 start Making Tax Digital
The last wave of sole traders and landlords to report income and expenses digitally.
April 2028
Incomes over £50,000 start Making Tax Digital
6 April 2026 marks the start of the 2026 to 2027 tax year. And the start of MTD for the first wave of sole traders and landlords.
April 2026
The first quarterly submission
7 August 2026 is when businesses need to submit their first quarterly submission by. The next submission is due 3 months later.
August 2026
Incomes over £30,000 start Making Tax Digital
The next wave of sole traders and landlords start to report income and expenses the new way.
April 2027
Incomes over £20,000 start Making Tax Digital
The last wave of sole traders and landlords to report income and expenses digitally.
April 2028
Incomes over £50,000 start Making Tax Digital
6 April 2026 marks the start of the 2026 to 2027 tax year. And the start of MTD for the first wave of sole traders and landlords.
April 2026
The first quarterly submission
7 August 2026 is when businesses need to submit their first quarterly submission by. The next submission is due 3 months later.
August 2026
Incomes over £30,000 start Making Tax Digital
The next wave of sole traders and landlords start to report income and expenses the new way.
April 2027
Incomes over £20,000 start Making Tax Digital
The last wave of sole traders and landlords to report income and expenses digitally.
April 2028
Questions? Answers.
How does Making Tax Digital work?
HMRC are changing how you report income tax. The tax itself is staying the same. Instead of the annual Self Assessment, you'll need to keep digital records and submit quarterly updates using HMRC-recognised software (like ours).
Isn't Making Tax Digital already in place?
Modernising the tax system is a big job and so HMRC are going about it in phases, over a few years. This started back in 2019 with Making Tax Digital for Value Added Tax (VAT). Now it's the turn of income tax, starting in April 2026.
What is Making Tax Digital compatible software and why do I need it?
HMRC requires sole traders and landlords turning over a certain amount to record your transactions and send quarterly updates using HMRC-recognised software. You'll get up-to-date tax estimates with every update, meaning fewer surprises when it comes to submitting your end of year return.
Who can use Monzo's Making Tax Digital tool?
Any sole trader and landlord who needs to use Making Tax Digital can use our tool. We won't support accruals basis accounting, filing Value Added Tax (VAT) and collaborating with accountants.
How long will it take for me to set up MTD software & can I import existing data?
Of course we're going to say this, but it really is straightforward to get going with Monzo. We'll guide you through the 3 step setup: turning on tax categories for record keeping, linking your HMRC account and opting in to Making Tax Digital and learning how to record money outside Monzo. Yes, you can record account activity and cash transactions that happen outside of Monzo yourself in the app.
Is Monzo's Making Tax Digital tool free?
Yes. Our free Monzo Business Account comes with Making Tax Digital software built in as standard.
How much are Monzo's business accounts?
You have 3 plans to choose from: Lite is free, Pro is £9 a month and Team starts at £25 a month.