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Sage Unveils New AI-Driven Tool to Automate UK's Making Tax Digital for Income Tax Compliance

Published on: 26 September 2025

Sage Unveils New AI-Driven Tool to Automate UK's Making Tax Digital for Income Tax Compliance

Sage has introduced the new AI-driven Making Tax Digital (MTD) for Income Tax automation tool, aimed at transforming the complexity of quarterly tax updates into a single, streamlined workflow.

The initial release of the tool, said to be the UK’s first, will be part of the Sage Copilot features, expected in October 2025.

The tool is intended to assist accounting firms in preparing for the quarterly updates, by organising client data and reducing manual tasks.

Beginning April 2026, landlords and self-employed individuals with annual earnings exceeding £50,000 will be mandated to keep digital records and submit quarterly updates using compatible software.

The MTD for Income Tax automation tool will support these requirements by facilitating client categorisation, task scheduling, document management, and early identification of potential issues.

Sage chief product officer Walid Abu-Hadba said: “The Sage Platform allows us to deliver products and services such as our agents faster, more securely, and with trust at the heart of everything.

“By connecting agents across our products, we take away complexity and make innovation practical. This is how we help accountants and businesses stay compliant and focus on growth, while experiencing new capabilities faster, with less disruption to how they already work.”

Sage's development of AI-driven tools is an extension of the existing Sage Platform, which allows for AI integration across its products.

The Sage Copilot, already in use for task automation and insight generation, is further extended by AI Agents.

Sage's strategy involves creating a network of agents that manage various operational tasks such as payroll, compliance and cash flow.

The MTD for Income Tax automation tool is specifically tailored for accountancy firms as they prepare for the 2026 MTD deadline.

It will be made available through Sage's suite of MTD solutions and within the Sage for Accountants offering in the UK.

"Sage launches new tool to assist UK accountants with MTD compliance " was originally created and published by International Accounting Bulletin, a GlobalData owned brand.

[SRC] https://finance.yahoo.com/news/sage-launches-tool-assist-uk-082244259.html

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