Lloyds and BankiFi Launch Embedded Tax Tool for UK SMEs

The free tool, powered by BankiFi, has been introduced in response to new HM Revenue and Customs requirements that came into effect on 6 April 2026, mandating digital record-keeping and quarterly tax submissions for sole traders and landlords.

By integrating the functionality within its existing banking platform, Lloyds aims to simplify compliance for SMEs while reducing the need for separate accounting software subscriptions.

Ruchir Rodrigues, BCB client strategy and commercial director at Lloyds, said: “Small businesses are looking for simple, cost-effective solutions that save time. By working with BankiFi to embed our Making Tax Digital tool within the Lloyds Business Account for free, customers can manage their tax administration directly within their banking app, without needing a separate accounting subscription.”

According to BankiFi CEO Mark Hartley, growing competition from digital challengers including Starling Bank, Monzo, Tide and Revolut is pushing traditional banks to strengthen their SME digital offerings.

Hartley noted that many small businesses still rely on fragmented financial tools and face challenges managing tax obligations and cashflow visibility.

The partnership also reflects a broader trend of banks embedding accounting and operational tools directly into their platforms as competition for SME customers intensifies.

BankiFi said the collaboration is expected to expand beyond tax compliance into additional services such as invoicing and cashflow management in the coming months.