More than half a million UK sole traders could be unprepared for the government’s first Making Tax Digital (MTD) deadline on 7 August, according to new research from Sage, which found just 8% are currently using accounting software to manage digital tax records.
The research also found:
- 70% of sole traders do not feel confident about the steps needed to stay compliant
- Only 37% correctly identified the 7 August deadline
- Nearly one in five (18%) are more aware of football transfer deadline day than the upcoming tax reporting changes
To raise awareness ahead of the deadline, Sage has teamed up with Gary Neville to launch a new ‘back-of-shirt’ sponsorship for UK tradespeople, offering 10,000 free hi-vis kits alongside access to Sage Sole Trader, its free MTD-compatible accounting software.
The initiative aims to help sole traders earning more than £50,000 prepare for new rules requiring digital record keeping and quarterly tax submissions through approved software. The sponsorship package includes free high-visibility jackets, polo shirts and stretch holster trousers designed for site use, as well as access to Sage’s software tools ahead of the August deadline
The sponsorship comes as Sage research highlights a gap in awareness around the first quarterly MTD deadline, with over half a million sole traders (18%) more likely to be tuned into key summer moments like football transfer deadline day. Among tradespeople, conversations about the game – from big decisions to standout moments – are still more likely to come up day-to-day than discussions around upcoming MTD reporting requirements.
Gary Neville said: “There’s already enough admin pressure on sole traders trying to run a business day to day. A lot of people still don’t realise these tax changes are coming, so this is about helping tradespeople get ready with the right support and tools before the deadline hits.”
The good news is that almost two thirds of UK tradespeople (61%) believe MTD will make their tax returns more accurate, with MTD likely to reduce manual errors. Furthermore, over a third (35%) would trust digital accounting platforms like Sage the most in helping them understand new MTD rules, reinforcing Sage’s role as a sponsor supporting sole traders through MTD.
Lisa Ewens, SVP Product, Small Business and Accountants at Sage, said: “Many sole traders are still unaware of how significant this change will be. Making Tax Digital is designed to modernise the tax system, but for many businesses the biggest challenge is simply knowing what they need to do next. We wanted to create a campaign that cuts through, helps sole traders understand what is needed from them and takes them to the places where they can get the support.”
Sole traders can claim their free hi vis work gear and access to Sage Sole Trader software at www.sage.com/hi-vis ahead of the MTD deadline.
