Starling Bank’s New MTD Tool

Starling Bank has announced a shiny new feature: freelancers and small businesses will soon be able to submit their Making Tax Digital (MTD) information to HMRC straight from their bank account.

They’ve done this by teaming up with Ember, meaning you’ll soon be able to record income, track expenses, and send your figures to HMRC all within your Starling app.

Sounds convenient. But before you dive in headfirst, let’s unpack what this actually means for freelancers.

✅ The Good Bits

1. One-stop convenience
No more juggling apps or spreadsheets, your banking, bookkeeping and HMRC submissions all live in one place.

2. MTD-ready
If you’ll need to comply with MTD soon (and many sole traders will), this could save a fair bit of setup time.

3. Seamless transaction flow
The data already lives in your bank, so it should, in theory, make the process smoother and less error-prone.

👀 Questions to Ask Yourself

Before you get too excited, pause for a second and think:

• Do I want my bank also to be my accountant?
  Mixing banking and bookkeeping might sound efficient, but it ties you to one provider for everything.

• If I switch banks later, what happens to my data?
  Can you easily take it with you, or will you need to start from scratch?

• Will I really understand what’s being sent to HMRC?
  Some transactions require context — such as when part of a purchase is personal. Is the app clever enough to handle that nuance?

• Am I happy with less oversight from my accountant?
  If your accountant can’t log in and double-check things, are you confident everything’s being filed correctly?

⚠️ The Risks

From an accounting perspective, this move blurs some crucial lines.

• Bank logic vs. accounting logic: banks see money in/out; accountants see the story behind each transaction. Those aren’t always the same thing.

• Over-reliance on automation: a few wrong categories or missed expenses could snowball into incorrect tax returns.

• Lock-in: once your bank is doing your tax, leaving them becomes a lot more complicated.

• Limited flexibility: as you grow, you may want to add a side hustle, property income, or subcontractors; a simple bank app might not keep up.

💬 Our Take at Gold Stag

We love good tech. We just don’t love everything in one basket.

For some freelancers, this might be a lifesaver, easy, quick, and tidy.
But for many, it’s a bit like asking your fridge to do your food shopping - clever idea, but not really what it’s built for.

Before you let your bank handle your tax:

✅ Think about whether convenience today could limit your flexibility tomorrow.
✅ Check if your accountant can still review and support you.
✅ Make sure you can get your data out if you ever move on.

🦌 Final Word

New tools like this can make life easier, but they don’t replace professional judgment.
You’re still the boss of your business, and your tools should work for you, not the other way round.