Minister James Murray visits Sage’s Newcastle headquarters

Sage, regarded as a leader in accounting, financial, HR, and payroll technology for small and medium-sized businesses (SMBs), was praised by the minister for its role in helping businesses adopt Making Tax Digital (MTD) for Income Tax.

This is said to be the most significant tax legislation update in 25 years.ames Murray, centre with Jon Cowan and the Sage team (Image: Sage)

The minister, who also chairs the HMRC Board, was shown how Sage is integrating AI-driven solutions, such as speech-to-text technology, to enhance customer experience.

This technology provides ‘valuable insights’, allowing for tailored support and improved customer service.

Sage’s global headquarters in Newcastle serves as the company’s engineering and innovation hub, playing a ‘key role in building solutions that simplify financial management for SMBs’.

During the visit, the minister joined a roundtable with Sage’s Accountant & Bookkeeper Advisory Board to learn how accountants are preparing clients for MTD.

The discussion focused on the shift to digital tools aimed at reducing administrative tasks and improving efficiency.

In April 2026, MTD for Income Tax will be mandated for the self-employed and landlords with a gross income of more than £50,000 in a tax year.

HMRC is encouraging people to voluntarily sign up now to their public beta testing to prepare and familiarise themselves with the changes.

The minister explored how Sage, along with bookkeepers and accountants, can encourage more small businesses to sign up for the test phase ahead of the mandatory implementation date.

On the day HMRC and the Department for Business and Trade launched a consultation on e-invoicing, James Murray saw how Sage is helping businesses comply with EU mandates.

Sage has long advocated for e-invoicing in the UK to accelerate MTD adoption and digital tax solutions, which can reduce late payments by 20 per cent, improve cash flow, and enhance tax compliance.

Additionally, e-invoicing streamlines routine tasks like data entry and tax filing, driving annual productivity gains of around 3 per cent in the UK, supporting the government’s broader growth mission.

James Murray MP, Exchequer Secretary to the Treasury, said: “It was great to visit Sage’s headquarters in Newcastle and see first-hand how technology is helping small businesses thrive.

“This government wants to cut down the time businesses spend managing their tax affairs, which will help them boost productivity and grow – key priorities in our Plan for Change.

“The MTD for Income Tax testing is well underway, and I’d encourage self-employed people and landlords to visit GOV.UK to sign up now and get ready ahead of April 2026.”

Jon Cowan, chief of staff at Sage, said: “At Sage, we are committed to supporting the UK’s small businesses and accountants with technology that makes their lives easier.

“Our Newcastle-based teams are developing AI-driven and automated solutions that help SMBs manage their finances with confidence.

“Accountants and bookkeepers play a vital role in helping SMBs transition to digital tax reporting, and this was a pivotal opportunity for them to engage with the minister.

“It was fantastic to share our work with the minister, discuss the role of AI in tax system modernisation, and explore how technology can improve HMRC’s customer service.

“We also look forward to hearing more from the government about its plan for how e-invoicing can be introduced in the UK later in the year.”