Global financial technology company, SumUp, has today announced that it is launching a new accounting offering directly inside its platform interface, powered by Sage, the leader in accounting, financial, HR and payroll technology for small and medium-sized businesses, bringing finance-grade AI capabilities into everyday workflows to help UK merchants with Making Tax Digital for Income Tax1 (MTD) compliance ahead of the government rules coming into force on 6th April 2026.
New government regulations will require that sole traders with income over £50,000 per year record income and expenses digitally and send quarterly tax reporting to HMRC, rather than full tax returns. Research by Sage indicates that 70% of sole traders are not yet prepared for MTD for Income Tax, with many still using pen and paper or spreadsheets to complete their Self Assessment.2 Through this joint offering, sole traders will be able to streamline their Income Tax reporting, reducing administrative burden and helping them stay compliant with HMRC requirements.
In line with SumUp’s continued commitment to help small businesses across the UK thrive, this major step in embedding accounting capabilities directly into the SumUp ecosystem marks its expansion into the accounting market. By leveraging Sage’s embedded accounting technology3 and expertise, SumUp transforms the payments, invoice, expense and banking data already captured within its ecosystem, including cash transactions, into compliant MTD for Income Tax submissions. Unlike traditional bank-led solutions that only track digital transfers, SumUp automatically captures all revenue streams without the need for manual input. Sole traders will be able to manage their Income Tax Self Assessment obligations entirely within the SumUp web interface, with income and expenses automatically recorded and categorised in real time, providing greater control and visibility over their finances.
Business expenses can already be captured by paying with the SumUp card and uploading a receipt, ensuring supporting documentation is securely stored alongside each transaction. The solution provides a clear framework for quarterly HMRC submissions and enables sole traders to prepare and file directly to HMRC from within the SumUp interface, while also providing a real-time estimate of tax liabilities to support forward-looking cash-flow management. New users who have not previously captured transactions in SumUp can also import historical bank data, enabling a smooth transition to digital reporting.
SumUp SVP Global Banking, Felix Lamouroux comments: “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.”
Gordon Stuart, SVP, Fintech & Embedded Services at Sage comments: “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.”
SumUp merchants can find more information about Making Tax Digital and how to prepare here: https://www.sumup.com/en-gb/
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