LONDON, March 9, 2026, 22:38 GMT
Sage Group plc said Monday it’s teaming up with fintech firm SumUp to offer a free accounting and tax-filing tool aimed at UK sole traders, just weeks before new HMRC digital filing requirements take effect. “Merchants do not start a business for the administrative side of things,” said Felix Lamouroux, who heads global banking at SumUp. Sage’s Gordon Stuart added that many sole traders are still “unprepared for the change ahead.” Sage
Timing is crucial here. Starting April 6, sole traders and landlords earning over 50,000 pounds from self-employment and property will need to keep digital records, submit quarterly updates to HMRC, and eventually file annual tax returns through compatible software. All of it falls under Making Tax Digital for Income Tax, or MTD.
SumUp plans to combine payment, invoice, banking, and expense information it already stores and automatically organize everything into filings ready for HMRC. Users will see a live estimate of what they owe in tax. The company says people can file directly through their SumUp dashboard—no need to set up a separate Sage account. HMRC recognition is still in progress ahead of launch.
It’s a sizable market. Back in August, HMRC put the number at around 864,000 people with self-employment and property income topping 50,000 pounds for 2023/24. That figure covers those with just self-employment income, just property income, or a mix of both.
Sage is pushing ahead with its plan to embed its accounting tools inside third-party apps, moving beyond the traditional Sage-branded software approach. Back in January, the company reported that organic revenue in the first quarter climbed 10% to 673 million pounds. Full-year guidance stayed put: at least 9% organic revenue growth, plus a margin boost.
This step takes Sage further into a crowded space, where competitors are already active with comparable compliance products. Xero notes its offering is already HMRC-recognized for MTD income tax. Intuit’s QuickBooks, on the other hand, says its UK customers can sign up to test new MTD income tax features before the same cutoff.
The commercial upside probably won’t materialize overnight. HMRC has confirmed it won’t issue penalty points for late quarterly updates during the first tax year for anyone entering MTD from April 2026. Still, late returns and late payments remain subject to penalties, so there’s less pressure for a rushed transition right at the deadline.
The pool accelerates from there. HMRC’s threshold drops to 30,000 pounds starting April 2027, with a further cut to 20,000 pounds planned for April 2028. That shift opens up a bigger market for Sage and rivals focusing on self-employed clients and landlords.
