Making Tax Digital (MTD) may be a pain for many landlords –  but they appear to be better prepared for the change than others.

New research from an accountancy firm shows that landlords are significantly more prepared than sole traders for MTD for Income Tax ahead of the April 2026 deadline. 

Four in five landlords (80%) say they feel prepared, compared with 64% of sole traders, more than a third of whom (36%) say they are not prepared.

When asked about the potential benefits of MTD, respondents most commonly point to easier reporting to HMRC, cited by 46% overall. 

Sole traders are more critical about MTD. In fact, one if four (26%) of sole traders report seeing no benefits at all from MTD for Income Tax. 

Landlords are more likely than sole traders to see bigger strategic benefits, such as better financial forecasting and data analysis (44% of landlords versus 14% of sole traders) and increased bookkeeping efficiency (40% versus 32%).

Around two-thirds of landlords (66%) say they are familiar with MTD requirements, compared with almost half of sole traders (46%) who say they know very little about what it involves. 

This is reflected in confidence levels: 86% of landlords say they have a good understanding of the steps needed to comply, versus 70% of sole traders, with sole traders more than twice as likely to report limited understanding (24% vs 10%).

Landlords remain more proactive overall, with 28% having attended webinars or consulted guidance, compared with just 8% of sole traders. 

One in five sole traders (20%) say they have taken no steps to prepare.

More than three‑quarters of respondents (77%) say they are likely to seek help from an accountant or adviser to support their MTD compliance, rising to 86% among landlords compared with 68% of sole traders

Despite being relatively well prepared, many landlords continue to seek reassurance, with concerns centered on choosing the right software (48%) and cost (44%). 

Half (50%) say training sessions or webinars would support their preparation, alongside ongoing adviser support (38%) and clearer official guidance (34%).

Sole traders, by contrast, are more focused on the practical burden of compliance. 

More than a third (36%) cite time pressures, while 32% are concerned about understanding the rules and 30% fear penalties or fines. 

The research was by Wolters Kluwer Tax & Accounting UK.