Buy-to-let landlords are showing higher levels of preparedness for Making Tax Digital (MTD) for income tax than sole traders, according to research commissioned by Wolters Kluwer Tax & Accounting.
The study found that 80% of landlords reported feeling ready for the changes ahead of the April 2026 deadline, compared with 64% of sole traders. More than a third of sole traders (36%) stated they are not prepared for the requirements.
Readiness gap emerges
The data reveals a 16-percentage-point gap in preparedness between the two groups, despite widespread awareness of the MTD requirements across both sectors. The findings suggest that landlords have made more progress in adapting to the digital reporting framework than self-employed individuals.
Bas Kniphorst, EVP and managing director of Wolters Kluwer Tax & Accounting Europe, said: “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.”
He added that with April 2026 approaching, the priority is “turning awareness into action, supported by clear guidance, the right technology and trusted professional advice.”
Implementation timeline
The April 2026 deadline will require landlords and sole traders to maintain digital records and submit quarterly updates to HMRC through compatible software. The requirement applies to those with annual business or property income above £50,000 initially, with a lower threshold of £30,000 following in April 2027.
The research highlights that whilst the majority of landlords have taken steps towards compliance, a significant minority of sole traders may face challenges meeting the deadline without additional support or resources.
