Half of UK adults (50%) don’t know what Making Tax Digital (MTD) for Income Tax involves, according to new research commissioned by Wolters Kluwer Tax & Accounting. Almost a third (31%) have never heard of MTD, and a further 19% have heard of it but don’t know what it involves. The findings come as sole traders and landlords already using MTD prepare to send HMRC their next quarterly update, due by 7 November.MTD is the biggest change to how income tax is reported since Self Assessment. Instead of reporting once a year, sole traders and landlords keep digital records and send HMRC a summary of their income and expenses every three months. Those with qualifying income over £50,000 have been required to use MTD since April 2026. The threshold falls to £30,000 from April 2027 and is planned to fall to £20,000 from April 2028, bringing many more people into scope.“Making Tax Digital is here, and for many people it is closer than they think. Our research shows that a lot of people still don’t know what it involves, or whether it applies to them. The good news is that it is not too late. With the next group of landlords and sole traders joining in April 2027, now is the time to check whether you are in scope, choose the right tool, and start keeping records as you go. Accountants have a central role to play in helping their clients make that change with confidence,” said Bas Kniphorst, EVP and Managing Director of Wolters Kluwer Tax & Accounting Europe.Awareness is not the same as understandingOnly 9% of UK adults say they already use MTD, while 13% know what it is and are ready to use it when it applies to them, and 16% are confident it does not apply to them. More than one in ten (12%) believe MTD applies to them but have not yet taken action.Confidence is also low. More than half (51%) are not confident they would know if a change to tax rules, such as MTD, applied to them, including 22% who are not at all confident. Just 11% say they are very confident.Many rely on reminders to meet tax deadlinesTwo in five UK adults (42%) doubt they would meet a tax deadline without being reminded. When faced with a tax deadline, 13% have left it until the final day or the night before, and 11% have avoided dealing with it because they found it stressful. Almost one in ten (9%) have missed a tax deadline completely, and 8% have paid a fine or penalty for filing late.People also turn to others for support. Around one in seven (15%) have asked a family member, friend or colleague for help with a tax deadline, while 11% have paid an accountant to sort it out for them.Record keeping remains a weak spotKeeping digital records is at the heart of MTD, yet 38% of UK adults are not confident they could find the records they need if HMRC asked them about their income. Only one in five (20%) say they are very confident they could.“Making Tax Digital is a real opportunity for sole traders and landlords to move their finances online. The start is the hardest part, but once you choose the right tool and log your income and expenses as you go, each quarterly update gets easier. Digital records often mean fewer mistakes, less time chasing receipts and a clear, up-to-date view of how your business is doing throughout the year, not just at tax time. Accountants have a big role to play here. They can help clients make the switch and turn those regular updates into timely advice that helps them run their business with more confidence,” said Marie Costers, VP & General Manager, Wolters Kluwer Tax & Accounting Belgium, the Netherlands and the UK.Preparation still mattersThe rollout of MTD for Income Tax is continuing. Sole traders and landlords joining from April 2027 will have a first-year soft landing, with no penalty points for late quarterly updates during 2027/28. Those who joined in April 2026 have no penalty points for late quarterly updates during 2026/27, although this does not cover late year-end tax returns. Anyone unsure whether MTD applies to them can check the income thresholds, get advice if they need it and start keeping digital records now.NoYesPersonal Finance06 Nov, 2026