Tax fear
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 MTD software built into Monzo Business as standard. Ready to set up now, no matter when you need to make the switch.
Made for sole traders and landlords. You can check it's the right fit before applying.
Making Tax Digital tool for Income Tax is available with Monzo Business Accounts, which are available for sole traders, landlords and directors of limited companies in the UK. Ts&Cs apply.
The App Store and Google Play Store ratings are correct as of August 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.
What’s Making Tax Digital for Income Tax, and who’s it for?
If you work for yourself as a sole trader or earn money from property, Making Tax Digital for Income Tax is for you.
This means using recognised software, like ours, to send quarterly updates and submit your tax return to HMRC.
If your turnover’s above £50,000, you should already be signed up. If it’s above £30,000, sign up before April 2027. They’re HMRC’s deadlines, but you can start sooner and get used to the new process.
Have a limited company? This one’s not for you. Stick with your current setup for filing Corporation Tax.
Free MTD software that’s HMRC-recognised
The basics your business needs with no hidden fees.
Watch and learn more
We can’t pay your taxes for you, but we can make filing them easy.
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.
“Monzo and the Making Tax Digital software has really taken the stress out of it. I very quickly discovered that it's not as scary as it had first appeared.”
Get ahead now, avoid stress later
Making Tax Digital for Income Tax applies in waves, starting from 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
90% of business accounts are opened on the same day. Sole traders and limited companies can apply. If you’re a sole trader or earn income from property, you can use our MTD tool.
Step 3
Get tax ready
Dip into helpful lessons, autocategorise 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 over 1 million businesses today
More than a million businesses in the UK and Ireland have joined Monzo and changed the way they bank. So can you. Sign up or switch to Monzo Business if you have a business account elsewhere.
Timeline: Meet the deadlines
What's happening and when.
- April 2026
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.
- August 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.
- April 2027
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 2028
Incomes over £20,000 start Making Tax Digital
The last wave of sole traders and landlords to report income and expenses digitally.
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.
Can you file your end of year tax return through Monzo Business?
Yes. You can send your end of year tax return straight from Monzo to HMRC, just like your quarterly updates.
Here’s how it works: say you’re a sole trader or landlord who needs to follow Making Tax Digital for Income Tax. You’ll send your quarterly updates by 7 August, 7 November, 7 February and 7 May. Then, instead of the old Self Assessment return, you’ll make your final declaration - your end of year tax return - by 31 January the following year. All through Monzo.