The Accountant Shortage Facing Sole Traders Under MTD Changes in 2026
- Heather
- Dec 29, 2025
- 4 min read
Big changes are coming for sole traders, landlords, and anyone who files a Self Assessment tax return. Starting in April 2026, HMRC will require many people to follow new rules called Making Tax Digital (MTD) for Income Tax. This means instead of sending one tax return each year, many will need to keep digital records, use approved software, and send four updates to HMRC every year.
This change will affect millions of people and create a big challenge: there will not be enough accountants and bookkeepers to help everyone.
Why Accountants and Bookkeepers Will Be in Short Supply
When MTD starts, many sole traders and landlords will need more help with their bookkeeping and tax work. The problem is simple: there are not enough accountants and bookkeepers to meet this new demand.
Everyone Will Need Help at the Same Time
Right now, many sole traders and landlords do their tax return once a year by themselves. Quarterly reporting is very different and more complex. When MTD begins, many people will realize they need professional help and will all look for accountants at the same time. This sudden surge will overwhelm the available professionals.
Accountants Are Already Very Busy
Accountants and bookkeepers already have full schedules. They manage existing clients, meet regular deadlines, and keep up with constant tax rule changes. Quarterly reporting means they will have to do four times the work for many clients. This extra workload leaves little time to train or hire enough new accountants before April 2026.
Small Clients May Struggle to Get Support
Many accounting firms prefer working with larger businesses because they bring in more revenue. Sole traders and landlords might face higher prices, reduced services, or even difficulty finding an accountant willing to take them on. This problem is already happening and will likely get worse as MTD starts.
What MTD Means for Sole Traders and Landlords
MTD is not just about filling out more forms. It changes how people keep records and report income to HMRC. Here are the key points:
Digital records are required: You must keep your income and expenses in digital form using approved software.
Four updates per year: Instead of one annual tax return, you will send updates every three months.
Use of approved software: HMRC will only accept reports sent through software that meets their standards.
This means sole traders and landlords will need to be more organised and keep track of their finances regularly. Many will need help to understand and use the new system.
How to Prepare for MTD and Avoid Problems
Since the shortage of accountants is a real risk, here are some practical steps sole traders and landlords can take:
Start Learning About MTD Early
Don’t wait until 2026 to understand the new rules. Start researching MTD now. Many free guides and videos explain what you will need to do.
Choose the Right Software
Look for simple, affordable software that is approved by HMRC. Some software is designed specifically for small businesses and sole traders. Trying software early will help you get comfortable with digital record keeping.
Keep Your Records Up to Date
Make it a habit to record your income and expenses regularly. This will make quarterly reporting easier and reduce the chance of mistakes.
Consider Getting Professional Help Early
If you think you will need an accountant or bookkeeper, start looking now. Don’t wait until the last minute when demand will be high. Even if you cannot hire a professional full-time, some offer advice or training sessions that can help you manage your own records better.
What Accountants Are Doing to Prepare
Accountants and bookkeepers know the challenges ahead. Many are:
Training staff to handle MTD requirements
Investing in new software and tools
Advising clients to prepare early
Focusing on larger clients to manage workload
This means sole traders and landlords might face higher fees or limited availability. Planning ahead is the best way to avoid surprises.
What This Means for You
The MTD changes will make tax reporting more frequent and digital. This will help HMRC get tax information faster and more accurately. But it will also create a big demand for accountants and bookkeepers.
If you are a sole trader or landlord, you should:
Understand the new rules now
Choose the right software early
Keep your records updated regularly
Find professional help before April 2026
Waiting too long could mean you struggle to get support or face higher costs.
Don’t Leave It Too Late
April 2026 might sound far away — but it isn’t.
If you wait until MTD starts:
Accountants may be fully booked
Fees may be higher
Help may be hard to find
Getting prepared early will put you in control.
New Training Course Coming Soon.
To help sole traders and landlords get ready, Arendelle is launching a self-paced online training course in mid-January 2026.
The course will show you, step by step:
How MTD for Self Assessment works
How to keep digital records properly
How quarterly reporting fits into your tax year
How to avoid common mistakes
💷 Pricing
Early bird (pre-launch): £147
After launch: £197
This course is designed to give you confidence and peace of mind — even if professional help is limited.
The Bottom Line
MTD is coming. Accountants will be stretched. Those who prepare early will cope best.
Training now could save you money, stress and sleepless nights later.
Heather Watson
Arendelle Ltd
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