A major shift in how the UK handles tax is just around the corner, offering hundreds of thousands of sole traders and landlords a chance to modernise their finances.

From 6 April, the Government’s Making Tax Digital (MTD) initiative becomes mandatory for those with a gross income above £50,000. While a recent poll by accountancy firm Azets—which has major hubs in Leeds, Bradford, and York—found that many firms are still in the early stages of prep, experts say the move brings significant long-term wins for the region’s self-employed.

The new system replaces the traditional once-a-year tax return with quarterly digital updates. This change aims to give business owners a clearer, "real-time" view of their cash flow and tax bills, helping them plan for the future with more confidence.
A smoother path to compliance

The survey of UK businesses revealed that while only 6% currently feel fully "MTD-ready," the transition is being backed by a wealth of support and new technology.

Of those surveyed, the main hurdles cited were choosing the right software (21%) and understanding the new reporting requirements (37%). However, specialists at Azets suggest that once these digital tools are in place, the administrative burden of the "January tax rush" will become a thing of the past.

Fraser Campbell, UK Head of Accounts at Azets, said: “While MTD will mean changes in processes and software, the switch will also bring advantages for individuals with access to near real-time information and insight about their businesses, cashflow, income and taxes for the first time.”

Who is affected?

The first phase of the rollout kicks off next month, affecting roughly 864,000 individuals across the UK. The net will widen over the next three years as income thresholds are lowered to include more taxpayers:

Mandatory Date	Gross Income Threshold	Estimated People Affected
6 April 2026	Over £50,000	864,000
6 April 2027	Over £30,000	1.6 million (cumulative)
6 April 2028	Over £20,000	2.9 million (cumulative)

Expert support on the doorstep

With over 1,000 advisers across the North and the rest of the UK, Azets is currently running workshops and training sessions to help local SMEs make the jump to digital.

“Getting the right advice from the right people will help those who are in scope of it be ready and confident,” added Mr Campbell. “Time is of the essence, and we urge all businesses affected to put plans in place to ensure a smooth transition.”