No. If you already bank elsewhere, you can connect your existing account to Tide via Open Banking. Tide will automatically import your transactions and handle your MTD submissions without you needing to switch.

The free MTD features are included in Tide’s free business bank account. They cover everything a sole trader needs to comply with MTD for Income Tax: bank-connected record-keeping, quarterly updates and a final declaration.

Tide Accounting is an additional subscription, at a monthly fee of £13.99 + VAT. It adds VAT submissions and financial reports, as well as profitability, expenses and cash flow forecasting.

Learn more about our accounting software.

The rollout for MTD for ITSA is phased based on your qualifying income: 

• Sole traders earning over £50,000 must comply by 6 April 2026

• Those earning between £30,000 and £50,000 will join on 6 April 2027

• Those with income over £20,000 will be mandated to join from 6 April 2028

Tide’s free business bank account provides free, HMRC-recognised MTD features for members, including digital record-keeping, quarterly updates, and direct filing to HMRC through the Tide app.

You'll need to keep digital records of all income and expenses, submit quarterly updates to HMRC and finalise your income tax with a final declaration. This can all be done via software or Tide's free business bank account.

Tide's MTD features allow you to connect your business bank account seamlessly, auto-categorise transactions, capture receipts, generate Self Assessment forms with tax estimates, and file returns directly to HMRC via the app.

Tide's free business bank account only supports MTD for Income Tax requirements.

However, with Tide Accounting you can submit returns for both VAT and Income Tax.