The introduction of Making Tax Digital for Income Tax Self Assessment will cause a major shift in the way that the UK’s 3.2 million sole traders will be required to manage their finances and submit tax returns.
Now that MTD ITSA is just under two years from coming into effect, we wanted to find out more about how those who will be affected feel about these changes, and what that will mean for both the self-employed community and the accounting industry.
With that in mind, we commissioned Opinium to survey 500 sole traders across the UK to understand more about their views on Making Tax Digital, how prepared they are for the changes, and what action they expect to take to become compliant with the rules.
Our findings show a sector overwhelmingly underprepared for the changes, unclear what action to take and, most importantly, keen to seek out third-party support for help managing their taxes.
For example, we found that:
- One in five sole traders has never heard of MTD, and 60% say they feel underprepared for the changes,
- 61% of sole traders believe that the MTD changes sound complicated and confusing, and over half (53%) are worried that the new rules will detract from being able to run their business,
- 40% of sole traders who don’t currently use an accountant said they would be willing to pay for accountancy and tax support in light of increased reporting requirements,
- Based on an average £30 monthly cost for Self Assessment accountancy services, this could create a potential £360 million growth opportunity for the industry.
For the full findings, as well as expert insight into how accountants can capitalise on this major opportunity, download the report for free now.