A survey conducted by IPSE found that 70% either have not heard of the initiative or do not realise it requires digital record-keeping and quarterly submissions through approved software.
MTD for Income Tax will come into force in April 2026.
However, IPSE’s survey found that most sole traders are still managing their finances in ways that will not meet MTD requirements. A third continue to use pen and paper for their books, two-thirds rely on spreadsheets, and more than half track income through bank statements.
IPSE said:
‘Given the fact that we’ve already had previous delays and considerable resources and time have been invested, HMRC will not be pausing this rollout anytime soon.
‘However, HMRC has a duty to inform as many sole traders as possible – and right now, that awareness campaign is simply not landing.
‘With less than six months until the first deadline, our findings highlight a serious communication gap. Most respondents reported receiving no direct information from HMRC about MTD, which explains why awareness remains so low.’
READ MORE
16/12/2025
View all >
15/10/2026
Six months until next phase of Making Tax Digital rollout
HMRC expects that more than 1m taxpayers will be required to use digital recordkeeping and send quarterly updates to HMRC when the second phase of MTD for Income Tax is extended from 6.4.27.
Applications open for scheme to cut electricity bills for manufacturers
Applications opened on 1 October 2026 for the British Industrial Competitiveness Scheme (BICS) as part of a government project to cut costs for businesses.
Responses to Shadow Chancellor's party conference speech
On 5 October, Shadow Chancellor, Andrew Griffith, delivered his speech to the Conservative Party conference.
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.