Just 3% of Accountants Ready for MTD as Six-Month Deadline Looms
London, UK, 16th October 2025: Despite four in five accountants (79%) identifying Making Tax Digital (MTD) for Income Tax Self-Assessment as their biggest compliance challenge, just 3% have fully prepared their clients for the mandatory changes, according to new polling from IRIS Software Group, a leading accounting technology provider in the UK*.
With the April 2026 deadline just six months away, the findings reveal 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 ranking it as a far greater challenge than Companies House reforms (12%) or anti-money laundering requirements (6%).
This gap represents a significant advisory opportunity for accountants. The findings follow earlier research from IRIS that revealed three quarters (76%) of sole traders wanted to be more aware of how MTD would impact their business**. One in three (31%) sole traders had never heard of MTD, while almost half (45%) – equating to around 1.4 million businesses*** – are at risk of non-compliance.
Even among sole traders who are aware of MTD, significant concerns remain. Almost two thirds (65%) of sole traders believe quarterly updates will represent a significant time burden, and three quarters (74%) want more support from HMRC to help them comply.
The research also revealed that readiness varies sharply by age, with sole traders aged 25–34 almost twice as likely to feel prepared compared to those aged 45–54.
From April 2026, self-employed individuals, landlords and small businesses with an income over £50,000 will be required to keep digital financial records and submit tax returns quarterly using HMRC-recognised software such as IRIS Elements. The threshold will extend to those earning over £30,000 from 2027.
Eva Mrazikova, senior director at IRIS Accountancy, said: “This is a brewing storm. MTD represents the biggest revolution in how sole traders and their accountants report on their business, yet confusion still reigns. Many people don’t fully understand what ‘digital’ means in this context or what compliance actually requires.
“The accountants who get ahead will be the ones who make MTD tangible for their clients now—demonstrating that first upload, showing the outcome, and turning uncertainty into habit. Technology has a huge role to play here, not just for compliance but to free up time for the strategic conversations clients increasingly expect. Solutions like IRIS Elements or IRIS Outsourcing enable firms to handle quarterly reporting with greater accuracy and efficiency, so accountants can focus on being trusted advisors rather than just form fillers.”
For more information, visit: https://www.iris.co.uk/
ENDS
*Poll of 476 participants on IRIS’s webinar MTD, Compliance & What’s Next on 9 September 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 held software companies. IRIS provides software solutions and services for finance, HR and payroll teams, educational organisations, and accountancy firms that takes the pain out of processes and lets professionals focus on the work they love. Through simplifying, automating and providing insights on everyday mission critical tasks for organisations of all shapes and sizes, IRIS ensures customers can look forward with certainty and confidence.
IRIS is the largest third-party online filer with the UK Government. Ninety-three of the top 100 UK accountancy firms use IRIS software. One in six of the UK’s workforce is paid by IRIS payroll offerings, and globally, six million employees receive their payslip via IRIS software every month. More than 850,000 UK employees are managed by IRIS HR solutions. Over 12,000 UK schools and academies use IRIS, with four million parents and guardians using IRIS apps to connect with their children’s school; 300 million messages are delivered between schools and parents each year, and over £15 million transactional payments are processed every month. IRIS is certified as a Great Place to Work® and recognised as one of The Times Top 50 Employers for Gender Equality in 2023. IRIS is also recognised as one of the Best Workplaces for Wellbeing, one of the Best Workplaces in Tech and one of the Best Workplaces for Women.
To see how IRIS helps organisations get things right first time, every time, visit www.iris.co.uk or follow IRIS Software Group on LinkedIn, Twitter and Instagram.