Starling Bank has announced the launch of new business banking capabilities ahead of the upcoming HMRC ‘Making Tax Digital’ launch. These new offerings include software that is compatible with ‘Making Tax Digital’ income tax requirements, making Starling the only bank to offer a proprietary HMRC-recognised solution directly within a bank account.
The bank has also prepared to launch mobile invoicing, a feature that aims to make it easier for small businesses to get paid. In addition, Starling has rolled out new AI tools designed to boost SMEs’ digital skills and improve money management.
One of the key features of Starling’s new offerings is the HMRC-recognised ‘Making Tax Digital’ software, which will be available in the new year. This software is embedded within the bank’s sole-trader account, allowing customers to send information directly to HMRC from their account. This is especially important as from April, HMRC will require landlords and sole traders with income over £50,000 to keep digital financial records for Income Tax Self Assessment.
The launch of this software is a direct result of Starling’s recent acquisition of tax-accounting software platform, Ember, in August. By integrating Ember’s solution into Starling’s app, the bank’s sole trader and SME accounts now offer everything business leaders will need for ‘Making Tax Digital’, without the need for third party software. Customers will have access to features such as tax deadline reminders, the ability to create, store and correct digital records of self-employment, property income and expenses, and file updates directly to HMRC.
Daniel Hogan, Co-founder of Ember at Starling Bank, commented: “As an entrepreneur myself, I know how time-consuming keeping track of income and expenses can be. That’s why we built Ember – to take the pain out of accounting. Teaming up with Starling has meant we’ve been able to do this at real scale for our SME customers, who will be able to manage everything directly within the bank’s app.”
In addition to the ‘Making Tax Digital’ software, Starling has also revealed a range of new tools designed to help customers with getting paid and managing their money. This includes mobile invoicing, which will allow customers to generate invoices from the mobile app in seconds. The bank has also introduced new business spending categories to provide customers with better financial visibility and control.
Starling has also updated its popular Spending Intelligence feature, which now allows SME leaders to track their spend across the tax year in addition to the calendar year. Customers can use natural language to understand their spending habits, such as by asking “how much did I spend at Google Cloud in the last financial year?” or “how much did I spend at Screwfix in FY2024?” before receiving instant analysis.
Adeel Hyder, Managing Director of SME Banking at Starling Bank, stated: “At Starling, we’re always trying to anticipate what our customers will need next to help make managing their money easier. All our new tools will make it smoother for business owners to run their SMEs, especially as everything is accessible directly from their bank accounts. This will help our customers save time and effort when it comes to looking after their finances.”
For more information about Starling’s ‘Making Tax Digital’ software, customers can visit the bank’s website and register their interest. Starling can also be found in the Government’s ‘Making Tax Digital’ for Income Tax software finder.
About Starling Bank:
Starling Bank is an award-winning, fully-licensed and regulated bank that was built to provide a fairer, smarter and more human alternative to traditional banks. The bank offers personal, business and joint current accounts, as well as a children’s card called Kite. Starling also offers a Software-as-a-Service (SaaS) proposition through its subsidiary Engine, using the proprietary technology platform that powers its own bank. Headquartered in London, Starling has offices in Southampton, Cardiff, and Manchester.
