Starling Bank has launched a free, HMRC-recognised Making Tax Digital (MTD) for Income Tax tool — fully integrated into its business accounts — giving sole traders and landlords a seamless way to comply with new quarterly reporting rules kicking in from 6 April 2026.
Unlike standalone accounting software, Starling's tool lives directly inside the banking app. No extra logins, no third-party platforms. Customers can categorise transactions in real time, match invoices automatically, and submit quarterly updates to HMRC with a single click.
What's Included
Accounting Essentials (free): MTD for Income Tax tool, real-time transaction categorisation, tax estimates, and a dedicated Space to set aside owed tax
Accounting Plus (£7/month until April 2027, then £14/month): adds VAT record-keeping and direct VAT submissions to HMRC
Available to all sole traders — not just those above the £50,000 threshold
The launch replaces Starling's previous Business Toolkit and serves its 450,000+ business customers.
Daniel Hogan, Director of Business Tools at Starling, said: "Our customers don't have to pay or shop around to adapt to the new Making Tax Digital rules; we've created a fully integrated solution for them."
Jennifer Staves, Deputy Director at HMRC, added: "MTD for Income Tax will help people keep clearer records throughout the year and reduce the stress that often comes towards the Self Assessment deadline."
With the April deadline weeks away, Starling's free, bank-native solution puts it squarely in competition with paid accounting platforms — and gives small business owners one less thing to worry about.