For sole traders and landlords, Making Tax Digital for Income Tax is no longer a distant deadline.
It is approaching quickly, yet new research suggests that a significant proportion of those affected remain unclear about what is required, unconvinced of the benefits, or simply unprepared for the scale of change ahead.
Despite repeated communications from HMRC, awareness among sole traders in particular remains stubbornly low.
A recent study by Wolters Kluwer Tax & Accounting found that almost half of taxpayers within scope say they know very little about MTD.
More concerning still, one in five sole traders who know MTD will apply to them admit they have taken no steps at all to prepare.
For advisers, this disconnect between messaging and action is becoming increasingly apparent as deadlines draw closer.
Awareness alone is not enough
Landlords are often perceived as being ahead of the curve and, in many cases, this is justified.
Around two thirds say they are familiar with MTD requirements and many have engaged with correspondence confirming they fall within wave one based on 2024 to 2025 earnings.
However, greater awareness has not removed uncertainty. Even among these relatively well-prepared landlords, almost half are worried about choosing the right software, while 44 per cent are concerned about the cost of compliance.
The position among sole traders is more challenging still. One in three fear MTD will be time consuming, while many admit they do not fully understand the rules.
30 per cent are concerned about penalties or fines, suggesting that fear, rather than preparedness, is driving engagement.
When asked what would help most, sole traders were clear. Hands-on support from an accountant or adviser ranked highly, alongside access to affordable, easy to use software.
This reinforces the importance of practical guidance rather than high-level explanations alone.
Scepticism continues to slow progress
More than a quarter of sole traders say they see no benefit from MTD, believing it will mainly help HMRC while increasing their own costs and administrative burden.
Landlords, by contrast, are more likely to recognise potential advantages. Nearly half cite improved financial forecasting and better access to data as positives, compared with just 14 per cent of sole traders.
That difference in outlook has a direct impact on behaviour. Clients who see no upside are far more likely to delay decisions and underestimate the work involved.
Why the coming months matter
The survey, conducted in January among landlords and sole traders with turnover exceeding £50,000, sends a clear message. Time is no longer on anyone’s side.
If you are not yet prepared for MTD, our team is ready to help you understand what is required and put the right systems in place. Getting started now will make the transition far smoother than waiting until urgency takes over.