Through working with Coconut Partners, we’ve found that sharing the MTD ITSA background and digital mandate is the best and clearest way for clients to understand the move to digital.
To make this easy, we’ve put together this guide that you can share with your sole trader clients, that will give them a comprehensive overview of Making Tax Digital for Income Tax, how it will change the way they manage their finances, and the benefits of moving to a digital product like Coconut as soon as possible:
We also recently conducted a survey of UK sole traders, which surfaced some interesting data about sole traders’ understanding of and attitudes towards MTD ITSA that may help you emphasise the benefits to your client of getting ready for the changes ahead of time:
One in five (21%) sole traders we surveyed have never heard of MTD for ITSA
Nearly two-thirds (60%) told us they are either underprepared or not prepared at all for the upcoming changes.
When the details of the changes were then explained to them:
62% stated that they were worried about the extra time their digital tax return would take them to complete
61% of them thought that the Making Tax Digital programme sounded complicated, and
53% thought it would take them away from my primary job of running their business.