- A quarter of UK sole traders still see no benefit to MTD
- Higher earners, digital workers and younger generations are more prepared
- Business owners are “concerned about the time, complexity and cost of complying with regulations”
New research has claimed that British landlords are actually more prepared than sole traders for the upcoming Making Tax Digital (MTD) requirements, with up to one in four (26%) sole traders surveyed by Wolters Kluwer seeing no benefit to MTD.
Four in five (80%) owners are prepared, compared to only three in five (64%) sole proprietors; one in five self-employed workers have taken no steps to prepare for the April 2026 milestone.
Wolters Kluwer uncovered some of the finer details, suggesting that lower-income and older workers are among the least prepared.
Are you ready for MTD?
Better forecasting and data analysis was found to be one of the key benefits of MTD, although only 14% of sole traders agree, compared to 40% of owners. The same goes for accounting efficiency: 40% of owners agree that MTD will help compared to 32% of sole traders.
Almost half (46%) see easier HMRC reporting as the main benefit, but Managing Director and Executive Vice President of Tax and Accounting for Europe, Bas Kniphorst, explains how MTD can drive a much broader process: “With the right support, MTD can become a catalyst for modernisation, delivering better financial visibility and long-term resilience.”
Wolters Kluwer explained that office/digital roles are more prepared than manual/customer-facing roles, that those earning between £50,000 and £250,000 are less prepared than those earning more, and that people aged 18 to 44 feel more prepared than those over 45.
“What we are seeing is that individual merchants, in particular, are concerned about the time, complexity and cost of complying with regulations, which is preventing many from taking the next steps,” added Mohammed Sidat, associate director of Technology Product Management.
Although MTD has been widely publicized ahead of its imminent implementation, the report still calls for more training and webinars, ongoing support from advisers, clearer official guidance from HMRC and more affordable and easy-to-use software.
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