Third of sole traders don’t know what MTD is

Making Tax Digital (MTD) for Income Tax is right around the corner but one in three sole traders have never heard of it, while nearly as many accountants feel unprepared

From April 2026, sole traders earning over £50,000 will be required to quarterly file under MTD for Income Tax, but 31% of them are not aware of the changes. And even those that knew about the planned MTD extension, nearly half (45%) were not prepared, revealed a survey by IRIS Software.

Three quarters (74%) said they wanted HMRC to be more proactive with better communications and publicity informing them about what was going on so they can understand the implication of the changes.

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