SumUp has recently introduced a new embedded accounting service, integrated with Sage, aimed at assisting UK sole traders in preparing for the upcoming Making Tax Digital for Income Tax (MTD for IT) requirements set to take effect on April 6, 2026.

This addition is complimentary to SumUp users and streamlines the process by allowing sole traders to handle their Income Tax Self Assessment responsibilities through the SumUp interface. Real-time tracking of income and expenses is facilitated via data from payment, invoicing, expense, and banking activities within the SumUp platform, including cash transactions. The system supports quarterly HMRC submissions and offers direct preparation and filing capabilities within the platform. Additionally, a real-time tax liability estimate aids in cash-flow management.

Compliance and Market Readiness

Starting from April 6, 2026, sole traders with annual incomes over GBP 50,000 will be obligated to digitize their income and expense records and submit quarterly reports to HMRC instead of the traditional annual Self Assessment tax returns. According to Sage’s research, approximately 70% of sole traders are currently unprepared for this shift, often relying on manual methods like pen and paper or spreadsheets.

In contrast to bank-driven solutions that only track digital transactions, SumUp’s comprehensive integration ensures coverage of all income sources without the need for manual entry. Business expenses paid through the SumUp card can be recorded with supporting documentation attached directly to each transaction. For smoother transition, new users have the option to import past banking data.

This launch signifies SumUp’s expansion into the accounting space, complementing its existing payment, invoicing, and business banking services by adding tax compliance and financial management functionalities.

Felix Lamouroux, SVP Global Banking at SumUp, remarked that this new feature leverages SumUp’s robust data infrastructure to support merchants in complying with MTD for Income Tax without extra costs or complexities. Gordon Stuart, SVP Fintech and Embedded Services at Sage, emphasized that the partnership aims to bring income tax reporting into routine operations, enabling sole traders to manage their obligations more efficiently without specialized knowledge or additional software.