Thousands of trade businesses unprepared for 2026 tax changes Sole traders urged to get ahead of important reforms to remain compliant
Posted by: electime 29th October 2025
THOUSANDS of trade businesses across Scotland and the UK are said to be unprepared for tax changes coming in April 2026, prompting experts to urge early action to stay compliant.
From next year, tradespeople operating as sole traders and landlords earning more than £50,000 will be required under Making Tax Digital (MTD) to report income and expenses quarterly using specialist bookkeeping software, as tax returns move fully online.
In response, rural business specialist firm, FBR Seed’s bookkeeping and payroll team are ramping up efforts to ensure sole traders from different sectors across Scotland and Northern England are supported through this transition.
Christine Nisbet, Finance Director at FBR Seed, said: “We speak to sole traders every week who still don’t realise this change is coming, or how close it is.
“From April next year, manual tax returns will no longer be accepted. Instead, submissions must be made quarterly through HMRC-recognised software like Xero or Sage.
“This is a big shift for people used to paper records or Excel spreadsheets. Many are simply unaware of the changes, or unsure how to go about getting set up, and we want to make sure as many businesses as possible understand what’s coming, so they can stay compliant and avoid unnecessary headaches down the road.”
While MTD will first apply to those earning over £50,000, the threshold will fall to £30,000 in 2027 and £20,000 in 2028, eventually covering all sole traders.
Originally introduced for VAT-registered businesses in 2019, the reforms now represent the most significant shift yet for the self-employed, with digital reporting set to become the default for millions across the UK.
Christine added: “The changes aren’t as daunting as they might sound, it’s simply something that businesses need to prioritise now to avoid falling behind.
“Our team is here to help at every stage, whether that means setting up the software, showing clients how to use it, or taking care of the process entirely. It’s a completely tailored service, shaped around how hands-on or hands-off each client wants to be.
“The best part is that it’s genuinely affordable. This support doesn’t come with a hefty price tag, it’s accessible and designed to take the stress out of the switch to digital.”
As a certified Silver Xero Partner, FBR Seed is helping clients access Xero’s MTD-ready package, available from just £7 per month.
While the firm mainly services businesses in rural sectors, its bookkeeping and payroll team can aid sole traders and small businesses of all kinds across Scotland and Northern England, from tradespeople and retailers to service providers and beyond.
With a heritage dating back to 1966, FBR Seed was officially formed in 2019 following the merger of Seed & Company and FBR Ltd.
Continued growth and further acquisitions have shaped it into a 25-strong, multi-disciplinary advisory, with offices in Kelso, Haddington, Brechin and Duns.
To learn more about FBR Seed, please visit: https://www.fbrseed.com/
