Only 3% of Accountants Are Ready for MTD As the Six Month Deadline Approaches

London, UK, October 16, 2025: Although four in five accountants (79%) identified Making Tax Digital (MTD) for Income Tax Self-Assessment as their biggest compliance challenge, only 3% have fully prepared their clients for the mandatory change, according to a new poll from IRIS Software Group, the UK’s leading accounting technology provider*.

With the April 2026 deadline just six months away, these findings demonstrate a troubling disconnect between concern and action. More than a quarter of accountants (29%) admit they have not taken any steps to prepare clients for MTD, despite rating this as a far greater challenge than Companies House reform (12%) or anti-money laundering requirements (6%).

This gap represents a significant advising opportunity for accountants. These findings follow previous research from IRIS which revealed three quarters (76%) of sole traders want to know more about how MTD will impact their business**. One in three (31%) sole traders have never heard of MTD, while almost half (45%) – equivalent to around 1.4 million businesses*** – are at risk of non-compliance.

Even among sole traders who are aware of MTD, there are still significant concerns. Almost two-thirds (65%) of sole traders believe that quarterly updates will create a significant time burden, and three-quarters (74%) want more support from HMRC to help them comply.

The research also revealed that readiness varies greatly by age, with sole traders aged 25–34 almost twice as likely to feel prepared as those aged 45–54.

From April 2026, self-employed people, landlords and small businesses with turnover of more than £50,000 will be required to keep digital financial records and submit quarterly tax returns using HMRC-approved software such as IRIS Elements. The threshold will be extended to those earning more than £30,000 from 2027.

Eva Mrazikova, senior director at IRIS Accountancy, said: “This is a storm brewing. MTD represents the biggest revolution in the way sole traders and accountants report on their businesses, yet confusion still reigns. Many people don’t fully understand what ‘digital’ means in this context or what compliance actually requires.

“Advanced accountants are those who make MTD real for their clients today—demonstrating the first upload, showing results, and turning uncertainty into habit. Technology has a big role to play in this, not only for compliance but also to free up time for the strategic conversations that clients increasingly expect. Solutions like IRIS Elements or IRIS Outsourcing enable companies to handle quarterly reporting more accurately and efficiently, so accountants can focus on being trusted advisors, not just form fillers.”

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*Poll of 476 participants at the IRIS webinar MTD, Compliance & Next on September 9, 2025

**Survey of 1,000 UK employees conducted by Censuswide, on behalf of IRIS Software Group, between 29 May – 2 June 2025

***Based on 3.1 million sole traders operating in the UK

About IRIS Software Group 

IRIS Software Group is a global provider of mission-critical software and one of the UK’s largest privately owned software companies. IRIS provides software solutions and services for finance, HR and payroll teams, educational organizations, and accounting companies that take the pain out of processes and allow professionals to focus on the work they love. By simplifying, automating and providing insight into everyday mission critical tasks for organizations of all shapes and sizes, IRIS ensures customers can look forward to them with certainty and confidence.

IRIS is the largest third party online reporter working within the UK Government. Ninety-three of the UK’s top 100 accountancy firms use IRIS software. One in six of the UK workforce is paid through IRIS’ payroll offering, and globally, six million employees receive their payslips through IRIS software every month. More than 850,000 employees in the UK are managed by IRIS HR solutions. More than 12,000 schools and colleges in England use IRIS, with four million parents and carers using the IRIS app to connect with their children’s schools; 300 million messages are sent between schools and parents every year, and more than £15 million of transactional payments are processed every month. IRIS is certified as a Great Place to Work® and recognized as one of The Times’ Top 50 Companies for Gender Equality in 2023. IRIS is also recognized as one of the Best Workplaces for Well-Being, one of the Best Workplaces in Technology, and one of the Best Workplaces for Women.

To see how IRIS helps organizations do the right thing every time, visit www.iris.co.uk or follow the IRIS Software Group on LinkedIn, Twitter and Instagram.