MTD for Income Tax: How to market your practice to sole traders

How will Making Tax Digital for Income Tax affect sole traders?

Making Tax Digital for Income Tax is the next stage in the government’s plan to modernise the UK tax system. From April 2026, sole traders with an annual turnover above £50,000 must comply with the new MTD for Income Tax rules. This includes using MTD-compatible software to keep and submit digital records, including quarterly updates and a Final Declaration.

Ensure you're up to speed with MTD for Income Tax

MTD for Income Tax is a big change for both you and your clients. The earlier you prepare, the smoother the transition will be. Read Xero’s guide to Making Tax Digital for sole traders to learn more about what it means in practical terms — including who is affected and what the new obligations are.

Establish your MTD offering for sole traders

MTD for Income Tax presents the ideal opportunity to grow your client base. Many sole traders who have previously completed their own Self Assessment tax returns may be looking for an accountant or bookkeeper for the first time, while existing clients may need extra support.

By offering a service that addresses clients’ potential pain points, you can position yourself as the right practice to help them navigate the changes.

1. Educational support

MTD for Income Tax means changes to how sole traders handle their taxes. The current annual Self Assessment will be replaced by several new reporting requirements. Sole traders are likely to be looking for guidance from accountants or bookkeepers on what these changes mean and how they can stay compliant when MTD for Income Tax comes into effect.

As their accountant or bookkeeper, you’re best placed to provide the support they need and to educate them on how MTD is an opportunity to embrace digitalisation. There are also plenty of MTD for Income Tax resources that you can direct them to.

2. Accounting software guidance

Along with the new reporting requirements, sole traders will need to use MTD-compatible software to submit their tax information to HMRC. Many sole traders will still be keeping paper records and be unfamiliar with cloud-accounting software. This is a good time for firms to position themselves as experts in this area — for example, by becoming Xero certified. This will reassure prospective clients that you are the right practice to support them through the transition to cloud accounting and digital record-keeping.

3. Compliance guidance

With so many changes ahead, sole traders may be concerned with how to ensure they are fully compliant.

Currently, many self-employed people only seek help once a year to complete their annual Self Assessment. MTD for Income Tax requires quarterly updates, along with a Final Declaration, so clients may require your help throughout the year.

Some sole traders may wish to continue using spreadsheets and bridging software, in which case they’ll need guidance on how to comply with HMRC’s new rules on digital links.

It’s important to position yourself as a continuous source of support not only in the lead up to MTD for Income Tax but after it comes into effect, too.

Marketing your offering to sole traders

Once you’ve established how your practice can help sole traders with MTD for Income Tax, you can market your offering to potential clients.

1. Highlight your MTD expertise on your website

Consider creating a page on your practice’s website dedicated to MTD for Income Tax. You can link to guides and resources on what sole traders need to know about MTD for Income Tax and outline the support and services you can offer. Including testimonials from existing sole trader clients will add credibility and demonstrate your expertise in helping the self-employed.

It’s worth spending some time on Search Engine Optimisation (SEO) to help boost your online presence and bring potential clients to your website. Create content targeting the most commonly searched questions that the self-employed are searching for around MTD for Income Tax.

2. Tap into your existing sole trader clients' network

Word-of-mouth can be a powerful marketing tool. Ask your existing clients if they’d be happy to recommend your services to other sole traders in their network. You can also ask them to review your practice on your Google My Business profile, and other popular review sites like Trustpilot and Yelp.

If you’ve got any clients already signed up to test MTD for Income Tax software, be sure to ask them to share their experience in case studies or reviews which you can then promote as part of your marketing strategy.

3. Run an MTD for Income Tax webinar

You can help sole traders prepare for MTD for Income Tax by running a free educational webinar. This is a chance to educate existing and potential sole trader clients about the upcoming changes and showcase your services.

4. Connect with sole traders on LinkedIn

Social media platforms like LinkedIn can be a good way of connecting with new clients. Make sure your profile is updated to include the specific MTD services you can offer. Post regularly with any MTD updates to demonstrate your credibility in this area.

You can also search for and join relevant groups on LinkedIn (for example, search for groups for UK freelancers or gig-economy workers). You can then interact and network with sole traders in these groups, marketing your MTD for Income Tax expertise and services.

5. Join the Xero Partner Programme

You can also boost your visibility to potential sole trader clients by becoming a Xero Partner and listing your practice on the Xero Advisor Directory. Clients will be able to search for you by the industry you serve or by location, making it a great way to market your offering.

Start growing your practice today

Xero has lots of free resources to help you prepare your practice for MTD for Income Tax and grow your client base. Take a look at our MTD for Income Tax resource hub, which includes guides covering everything from how to segment your clients for Income Tax to a deep-dive on how Self Assessment is changing.