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HSBC UK and Sage Simplify Tax Management for Small Businesses

In a significant move aimed at empowering small business owners, HSBC UK has partnered with Sage to introduce a groundbreaking tool called My Business Finances. Launching ahead of the government's Making Tax Digital (MTD) initiative, this new solution is designed to streamline the tax reporting process and help small businesses stay compliant with upcoming regulations.

Understanding the New Tool

The My Business Finances tool allows eligible customers, including sole traders and landlords, to manage their accounting and submit tax returns directly from their HSBC UK business accounts. This innovation leverages Sage's embedded technology to simplify the often daunting task of tax compliance. With the MTD changes taking effect from April 2026, it’s crucial for small business owners to prepare adequately, and this tool aims to make that process easier and more efficient.

A stark highlight from recent Sage research indicates that a striking 70% of sole traders are unprepared for MTD, with many still using traditional methods, such as pen and paper, for tracking income and expenses. The reliance on spreadsheets is commonplace, with two-thirds resorting to this method for completing their self-assessment returns.

Bridging the Readiness Gap

This collaboration between HSBC UK and Sage seeks to bridge the readiness gap for small businesses. By providing practical support, the new tool will not only help users remain compliant but will also save them time and help maintain control over their finances. The integrated platform allows business owners to handle invoicing, accounting, and tax compliance from a single interface, eliminating the need to switch between various applications and platforms.

Insights from Industry Leaders

Tom Wood, Head of SME Business Banking at HSBC UK, emphasized the importance of efficiency for small business owners who often juggle multiple roles. He noted, "Small businesses are often incredibly ambitious but generally short on time. As a leading and trusted SME banking partner, we're always looking at where owners can be more efficient so they can focus on growing their business."

He further added that tax compliance can be a significant drain on time and resources. With the introduction of My Business Finances, businesses will be able to alleviate these burdens, allowing them to concentrate on what truly matters—expanding their operations.

From Sage's perspective, Gordon Stuart, SVP of Fintech Embedded Services, highlighted the intent behind the integration. "Small businesses and sole traders want to focus on doing what they do best, without the burden of complex admin. By embedding Sage's trusted accounting and tax capabilities directly into HSBC UK's business banking account, we're making managing finances effortless and accessible."

Ongoing Support for Small Businesses

This initiative is part of a series of supportive measures introduced by HSBC UK recently. In July 2025, the bank eliminated monthly account fees for its Small Business Banking Account, providing free access to digital banking services and Business Specialists. Additionally, HSBC runs the Small Business Growth Programme, offering training, events, and expert insights aimed at equipping entrepreneurs with the necessary tools for success.

For those interested in exploring My Business Finances, it will be initially available to sole traders and landlords in preparation for the MTD changes. Interested small business owners can learn more and express their interest by visiting the HSBC business banking website.

Conclusion

As the financial landscape shifts towards digitization, tools like My Business Finances are essential. They not only simplify the tax reporting process but also enable small businesses to thrive amidst regulatory changes. With HSBC UK and Sage's latest offer, businesses can look forward to a more manageable financial future.

For further details, please visit HSBC Business Banking.