London, UK, 31/10/2024 – Sage, a leader in accounting, financial, HR, and payroll technology for small and mid-sized businesses (SMBs), commits to offering a free digital tax solution designed to help sole traders easily adopt the UK Government’s latest tax reforms.
Following the recent Autumn Statement, the Government confirmed that, starting in 2026, around 2.8 million sole traders and landlords will need to comply with Making Tax Digital for Income Tax legislation after the earnings threshold is set to lower to £20,000 by the end of this parliament.
Many small businesses still rely on paper-based record-keeping resulting in inefficiencies and errors in tax submissions. Sage’s free software tool offers an accessible way for businesses to shift from paper-based records to a digital platform. Available to any sole trader or landlord with a single source of income, Sage Accounting Individual Free is available to start digital record keeping today and MTD for Income Tax functionality will be available from April 2026 to help sole traders stay organised and compliant.
"Our goal is to help small businesses and sole traders thrive by providing them with the tools and advice to succeed and make it easier for the smallest businesses to join the digital economy. Business owners lose valuable time preparing and managing tax submissions while running and growing their businesses, so we want to make that process simpler," said Neal Watkins, EVP, Small Business, Sage.
“We see this as a milestone that will enable businesses to focus more time on growth and we are committed to play our part by providing a free software tool that will help them spend more time on growing their business.”
Sage Accounting Individual Free provides single user access on web and mobile, allowing them to capture, record, and categorise income and expenses on the go. Businesses can use this free solution as long as they need it. As their business and accounting needs grow, Sage offers scalable solutions — available at a cost — that support every stage of their business growth.
Sage believes that as businesses adapt to new Making Tax Digital for Income Tax requirements, the role of the accountant as a trusted advisor becomes more crucial than ever. Sage is committed to supporting accountants in this essential role, offering tools that strengthen the advisor-client relationship and enable businesses to make informed, growth-driven decisions as they navigate the transition to digital compliance and the daily challenges of business ownership.
Exchequer Secretary to the Treasury, James Murray said:
“It is fantastic to see industry leaders working with us to modernise the tax system by delivering free software for tens of thousands of UK businesses.
“Making Tax Digital reduces errors for businesses, meaning they spend less time managing their tax affairs, and more time creating jobs and helping to drive economic growth."
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Sage Accounting Individual Free also offers businesses support via access to a community of like-minded business owners and a range of blog posts, articles and videos available 24/7 so they can navigate through the new compliance with confidence.
