What Sole Traders Need to Know Before April 2026
From April 2026, significant changes are coming for sole traders across the UK as Making Tax Digital (MTD) for Income Tax becomes mandatory for many. However, recent research has revealed a concerning reality: one in three sole traders have never even heard of it.
What Is MTD for Income Tax?
MTD for Income Tax is HMRC’s next step in the move towards a fully digital tax system. Under these new rules, sole traders with income over £50,000 from self-employment or property will need to keep digital records and file updates quarterly instead of annually via Self-Assessment.
The next phases will gradually extend to those earning over £30,000 from April 2027, and possibly to those above £20,000 in future years.
The Readiness Gap: Who’s Not Prepared?
A recent survey by IRIS Software highlighted that:
- 31% of sole traders are unaware of the upcoming changes.
- Of those who are aware, 45% admit they are unprepared.
- Alarmingly, only 7% of unaware individuals said they trust their accountant to proactively guide them through the change.
- Three-quarters (74%) want better communication from HMRC to help them understand the implications.
This gap in awareness and trust is a call to action—not only for business owners but also for accountancy professionals.
The Impact on Accountants
Accountants themselves are feeling the pressure:
- A third of accountants reported not being ready for the first MTD deadline.
- 8% said they were “very unprepared”, with another 8% unsure of their readiness.
- 80% listed MTD as their biggest challenge in 2025, surpassing other concerns like tax changes and AI adoption.
- A number of firms are still reliant on HMRC’s own portals, which will eventually be phased out.
MTD: An Operational Challenge Ahead
MTD isn’t just a compliance issue—it’s an operational one. Filing updates quarterly plus a year-end return means that accountancy workloads could spike dramatically during April, July, October, and January.
Some smaller firms are already staffing up in anticipation, but digitalisation and automation will be essential to managing the increased workload and client contact expectations.
Younger Sole Traders Are More Confident—But Everyone Needs Support
Interestingly, optimism about MTD is higher among younger business owners:
- 37% of 25–34-year-olds feel ready for the changes,
- Compared to just 10% of those aged 45–54.
Despite this, the need for clear, professional advice and support spans all age groups and industries.
How WBV Accountants Can Help You Prepare
At WBV Accountants, we are already taking steps to ensure our clients are not only informed but fully supported during the MTD transition. Whether you’re a sole trader, landlord, or accountant in need of guidance, we’re here to help you move forward with confidence.
As a firm, we are in readiness for the new procedures. These will be explained thoroughly to our current clients, and we are able to assist new clients who require our services.
The new MTD regime can be difficult to navigate independently, so we urge the affected individuals to seek advice.
Let’s Talk About Your Readiness
If you earn over £50,000 from self-employment or property, you’ll likely be affected by MTD for Income Tax from April 2026. Get in touch with WBV Accountants today to review your current systems, discuss your next steps, and ensure you’re set up for digital success.
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