Comparison website Moneysupermarket has launched a new business bank account to help small firms comply with Making Tax Digital rules.
The service follows the company's recent expansion into saving and investment platforms, offering app-based financial tools specifically aimed at small businesses, sole traders and landlords.
Under new tax reporting deadlines, businesses and self-employed individuals with a qualifying income of more than £50,000 are required to report their earnings digitally to HM Revenue and Customs.
Account pricing and transaction fees
Subscriptions for the new account start at £5 a month for businesses with up to £750 in total monthly deposits. For deposits between £750 and £7,500, the fee rises to £12 a month, while accounts receiving more than £7,500 a month will be charged £20 monthly.
Unlike competing digital business accounts provided by banks such as Monzo, Starling and Tide, Moneysupermarket does not offer a free ongoing subscription tier. However, customers are given a free three-month trial that grants full access to all account features.
Account holders must still pay transaction fees, although the first three account transfers or direct debits each month are free of charge.
Lis Barton, chief customer officer at Moneysupermarket, said the account is "designed to take the hassle out of managing company finances, with built-in tools like real-time transaction tracking and automated expenses categorisation to help with Making Tax Digital requirements".
Making Tax Digital compliance tools
The account comes as small business owners face stricter digital record keeping requirements enforced by HM Revenue and Customs, the UK tax authority. The first Making Tax Digital deadline for sole traders and landlords earning over £50,000 fell on August 7.
Affected businesses are required to keep digital records of every transaction and submit quarterly updates detailing their income and expenses. The Moneysupermarket app includes automated tracking tools to categorise these transactions and allows users to submit VAT returns directly from the account to meet Making Tax Digital for VAT rules.
Figures from HMRC show that sign-ups for the scheme have been sluggish, with more than 400,000 eligible taxpayers missing the August 7 deadline. HMRC has stated that it will begin automatically registering qualifying sole traders and small businesses from September if they have not yet signed up themselves.
While there are currently no financial penalties for missing quarterly updates during the present tax year, HMRC penalties will begin applying from April 6, 2027. Newer businesses are advised to compare fee-paying accounts against free banking options from competitors before choosing a provider.
Expansion into financial products
Moneysupermarket is best known as a financial comparison website, but the business bank account represents its latest move to provide direct financial services to consumers and small firms.
Earlier this year, the company introduced a cash savings platform that allows users to compare interest rates and transfer money between different bank accounts using a single login. Similar multi-bank savings services in the UK market include Flagstone and Hargreaves Lansdown Active Savings.
Moneysupermarket has also launched an investment service that offers a select choice of ready-made investment portfolios and exchange-traded funds. Customers can open both a tax-free stocks and shares Isa and a general investment account through the platform.
The investment platform charges an annual account fee of 0.34 per cent of the total investment value. Although the service is aimed at beginners starting an investment habit, alternative providers such as Freetrade, InvestEngine and Prosper offer trading accounts without annual management fees.
