- A quarter of UK sole traders still see no benefit to MTD
- High earners, digital workers and younger generations are more ready
- Business owners are “concerned about the time, complexity and cost required to become compliant.”
New research reveals that UK landlords are actually better prepared for the upcoming Making Tax Digital (MTD) requirements than sole traders, with up to one in four (26%) sole traders surveyed by Wolters Kluwer seeing no benefit to MTD.
Four in five (80%) homeowners are ready, compared to just three in five (64%) sole traders – one in five self-employed people have taken no action to prepare for the April 2026 milestone.
Wolters Kluwer uncovered some of the more subtle details, suggesting that low-income earners and older workers are among the least prepared.
Are you ready for MTD?
Better forecasting and data analysis was identified as one of the key benefits of MTD, although only 14% of sole traders agreed, compared to 40% of owners. The same is true when it comes to accounting efficiency, with 40% of owners agreeing that MTD will help them, compared to 32% of sole traders.
Almost half (46%) see the simplification of HMRC reporting as the main benefit, but Bas Kniphorst, Managing Director and Executive Vice President of Tax and Accounting Europe, explains how MTD can kick-start a much wider process: “With the right support, MTD can become a catalyst for modernization, providing better financial visibility and long-term resilience.
Wolters Kluwer explained that clerical/digital roles are more ready than manual/customer facing roles, £50-250k earners are less ready than higher earners and 18-44 year olds feel more prepared than over 45 year olds.
“What we are seeing is that individual entrepreneurs, in particular, are concerned about the time, complexity and cost of compliance, which is preventing many from taking the next steps,” added Mohammed Sidat, associate director of technology product management.
Although MTD was widely publicized ahead of its imminent coming into force, the report still calls for additional training and webinars, continued support for advisers, clearer official guidance from HMRC and more affordable and easier to use software.
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