Landlords more prepared than sole traders for Making Tax Digital, new Wolters Kluwer research finds

New research commissioned by Wolters Kluwer Tax & Accounting shows that landlords are significantly more prepared than sole traders for Making Tax Digital (MTD) for Income Tax ahead of the April 2026 deadline. Four in five landlords (80%) say they feel prepared, compared with 64% of sole traders, more than a third of whom (36%) say they are not prepared, highlighting a clear readiness gap despite high overall awareness.

“Making Tax Digital represents a fundamental shift in how individuals manage and report their tax affairs, and this research shows that while landlords are largely on track, many sole traders still feel uncertainty. With April 2026 fast approaching, the priority now must be turning awareness into action, supported by clear guidance, the right technology and trusted professional advice. With appropriate support, MTD can become a catalyst for modernisation, delivering better financial visibility and long‑term resilience,” said Bas Kniphorst, EVP and Managing Director of Wolters Kluwer Tax & Accounting Europe.

Easier HMRC reporting emerges as the top perceived benefit of MTD
When asked about the potential benefits of MTD, respondents most commonly point to easier reporting to HMRC, cited by 46% overall. Sole traders are more critical about MTD. In fact, one if four (26%) of sole traders report seeing no benefits at all from MTD for Income Tax.

Landlords are more likely than sole traders to see bigger strategic benefits, such as better financial forecasting and data analysis (44% of landlords versus 14% of sole traders) and increased bookkeeping efficiency (40% versus 32%).

Understanding the gap
While overall awareness of Making Tax Digital is similar across both groups, depth of understanding varies significantly. Around two-thirds of landlords (66%) say they are familiar with MTD requirements, compared with almost half of sole traders (46%) who say they know very little about what it involves.

This is reflected in confidence levels: 86% of landlords say they have a good understanding of the steps needed to comply, versus 70% of sole traders, with sole traders more than twice as likely to report limited understanding (24% vs 10%).

Across both groups, professional support plays a key role. Just over half of respondents (51%) have already sought guidance from an accountant or adviser, although landlords remain more proactive overall, with 28% having attended webinars or consulted guidance, compared with just 8% of sole traders. One in five sole traders (20%) say they have taken no steps to prepare.

Generational, sector and turnover differences underscore uneven readiness
The research also highlights clear differences in readiness by age, sector and turnover. Respondents aged 18–44 are more likely to say they feel prepared for MTD (79%) than those aged 45+ (63%) — and far less likely to have taken no steps at all (5% vs 26%).

Sector differences also play a role in shaping readiness for Making Tax Digital. Landlords and sole traders working in office based or digital roles are more likely to have prepared by setting up digital records (44%). In contrast, those in customer‑facing and manual roles appear less able to adapt, with only 15% having taken similar preparatory steps. Overall, they feel less prepared (62% vs. 79%).

By turnover, those in the £50,000–£250,000 bracket are least likely to feel prepared (65%), compared with 81% among those turning over £250,000–£1m and 78% among those above £1m. Higher-turnover respondents are also more likely to say they will seek help from an accountant or adviser (88% for £1m+ vs 69% for £50,000–£250,000).

Accountants seen as central to readiness
More than three‑quarters of respondents (77%) say they are likely to seek help from an accountant or adviser to support their MTD compliance, rising to 86% among landlords compared with 68% of sole traders. This highlights the growing importance of professional advice ahead of the April 2026 deadline.

Despite being relatively well prepared, many landlords continue to seek reassurance, with concerns centered on choosing the right software (48%) and cost (44%). Half (50%) say training sessions or webinars would support their preparation, alongside ongoing adviser support (38%) and clearer official guidance (34%).

Sole traders, by contrast, are more focused on the practical burden of compliance. More than a third (36%) cite time pressures, while 32% are concerned about understanding the rules and 30% fear penalties or fines. As a result, they place greatest value on hands‑on support from an accountant or adviser (44%) and access to affordable, easy‑to‑use software (44%).

“What we’re seeing is that sole traders, in particular, are concerned about the time, complexity and cost of becoming compliant, which is holding many back from taking the next steps. Accountants will play a vital role in helping clients navigate Making Tax Digital — from choosing affordable, compliant software to building confidence in new digital processes,” said Mohammed Sidat, Associate Director, Technology Product Management, Wolters Kluwer Tax & Accounting UK.

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