London, UK - 19 January 2026 - Sage (FTSE: SGE), the leader in accounting, finance, HR and Payroll technology, has today announced a new competition to help ease the costs of a tax bill for one lucky sole trader ahead of the Making Tax Digital (MTD) deadline in April.
New research from Sage and IPSE says seven in ten sole traders are still unprepared for a major change to the tax system just three months before it comes into force, according to new research.
With Making Tax Digital for Income Tax set to begin in April, a study of 1,000 UK sole traders found that 70% are not ready, with a third still tracking income and expenses using pen and paper and two thirds relying on spreadsheets to complete their Self-Assessment returns.
The findings have prompted a £25,000 prize draw aimed at encouraging sole traders to take action before the deadline.
The competition will see one sole trader win £25,000 to help cover the cost of a tax bill, as millions prepare to move to quarterly digital reporting for the first time.
Experts warn that failing to prepare could lead to higher admin burdens, compliance errors and unexpected tax bills.
“This is one of the biggest changes sole traders have faced in decades, yet most are still not ready” said Lisa Ewens, Senior Vice President for Small Business at Sage - “Leaving it late risks stress, mistakes and nasty surprises. The earlier people start, the easier this transition becomes.”
Preparing for quarterly digital reporting
Making Tax Digital for Income Tax will require sole traders to keep digital records and submit updates to HMRC every quarter, replacing the annual Self-Assessment process many are used to.
Alongside the prize draw, free MTD-ready accounting software is being offered to help sole traders start keeping digital records and understand how the new system will work in practice.
Sole traders can enter the ‘Win £25,000 to cover your tax bill’ competition by signing up for Sage’s free MTD-ready software. Entries close on 31 January.
