Rising Scepticism and Low Awareness: The Latest MTD Survey Results

The MTD Awareness Gap: Why Sole Traders are Skeptical (And How to Prepare)

A recent survey by Wolters Kluwer has uncovered a "worrying" lack of preparation and deep skepticism among the UK’s self-employed. With the mandatory rollout of Making Tax Digital (MTD) for Income Tax just weeks away for those earning over £50,000, nearly half of sole traders admit they "know very little" about what is required.

At Harris & Co, we believe that understanding the facts is the first step toward reducing the stress of this transition.

The Readiness Gap: Inaction vs. Mandation

The survey identifies a significant disconnect between HMRC's timeline and taxpayer readiness:

• 46% of sole traders say they have very little knowledge of MTD.
• 20% of those who know they are affected have taken zero steps to prepare.
• One in four see no benefit to the change at all, fearing it will simply lead to higher costs and more administrative work.

What is Fueling the Scepticism?

Many business owners view MTD as a tool designed for HMRC’s benefit rather than their own. The main concerns cited in the survey include:

1. Time Pressures: 33% fear the quarterly reporting cycle will be too time-consuming.
2. Complexity: 32% are worried about understanding the new rules.
3. Financial Risk: 30% fear being hit with penalties or fines for genuine mistakes.

The Silver Lining: Seeking Support

Despite the skepticism, the survey highlights a positive trend: 77% of sole traders are likely to seek professional help. Business owners are placing the highest value on two things:

• Hands-on support from an accountant (44%).
• Access to affordable, easy-to-use software (44%).

How Harris & Co is Supporting Our Clients

You don't have to navigate MTD alone. We understand that your priority is running your business, not managing complex digital filing systems.

Our goal is to turn "time-consuming" into "seamless" by:

• Choosing the Right Software: We help you find affordable, HMRC-recognised tools that fit your specific workflow.
• Managing the Rules: We take the lead on quarterly updates so you don't have to worry about the "fine print."
• Penalty Protection: By ensuring your records are accurate and submitted on time, we help you avoid unnecessary fines.

Don’t Wait for the Deadline

With the April 2026 start date fast approaching, now is the time to move from "inaction" to "readiness." 

Get in touch with Harris & Co today to discuss your MTD strategy