SumUp partners with Sage to support UK digital tax reporting

By Vriti Gothi

SumUp has expanded into the accounting technology segment by launching a new embedded solution designed to help sole traders comply with the UK’s upcoming digital tax reporting requirements.

The offering, developed in partnership with Sage Group, integrates accounting capabilities directly within the SumUp platform and is aimed at helping small businesses prepare for the implementation of Making Tax Digital for Income Tax rules set to take effect on 6 April 2026.

Under the new regulation introduced by HM Revenue and Customs, sole traders and landlords earning more than £50,000 annually will be required to maintain digital records of income and expenses and submit quarterly updates rather than filing a single annual Self Assessment return. Industry research cited by Sage indicates that around 70% of sole traders remain unprepared for the transition, with many still relying on spreadsheets or manual bookkeeping.

Through the collaboration, SumUp is embedding Sage’s accounting infrastructure and AI-enabled transaction categorisation tools into its merchant platform. The integration allows transaction data from payments, invoices, banking activity, and expenses captured within the SumUp ecosystem to be automatically organised and converted into compliant quarterly tax submissions.

Unlike many bank-led solutions that primarily track digital payments, the platform is designed to capture a broader range of revenue streams, including cash transactions, reducing the need for manual entry. Sole traders will be able to manage their tax reporting process within the SumUp web interface, with income and expense data recorded and categorised in real time.

The system also enables users to store receipts alongside expense transactions, generate estimated tax liabilities, and submit reports directly to HMRC. Businesses migrating to the platform can import historical banking data to support the transition to digital reporting.

Gordon Stuart, SVP, FinTech & Embedded Services at Sage, comments, “Making Tax Digital for Income Tax represents a significant shift for sole traders, and too many are still unprepared for the change ahead. By embedding Sage’s accounting and tax capabilities, including AI powered autocategorisation of transactions, directly into the SumUp interface and experience, we’re removing complexity where small businesses already manage their money. This collaboration brings income tax reporting into everyday workflows, helping sole traders stay on top of their obligations without needing specialist knowledge or additional software. It’s a clear example of how embedded accounting technology can meet small businesses where they are and make compliance simpler, more intuitive and more accessible.”

The launch signals a broader trend in FinTech toward embedded financial management tools, as payment platforms increasingly integrate accounting, tax, and compliance capabilities to deepen relationships with small business customers.