Sage, Gary Neville back tax digital push for traders

Sage has launched a campaign with Gary Neville to raise awareness of Making Tax Digital rules among UK sole traders. New research from the software group found that only 30% say they clearly understand the changes.

The campaign offers 10,000 free hi-vis workwear kits to tradespeople, alongside access to Sage Sole Trader, its accounting software for sole traders. It targets workers earning more than £50,000, who will need to keep digital records and submit quarterly updates through approved software under the new tax regime.

Sage's survey points to a wide awareness gap before the first Making Tax Digital for Income Tax deadline on 7 August. It found that 70% of sole traders do not feel confident about the steps needed to remain compliant, while only 37% correctly identified the deadline.

The research also suggests that take-up of digital tools remains low. Just 8% of those surveyed said they currently use accounting software to manage digital tax records.

The findings indicate that more than half a million sole traders could be unprepared for the first reporting deadline. In Sage's survey, 18% of respondents said they were more aware of football's transfer deadline day than of the upcoming tax reporting changes.

Awareness gap

Neville, the former footballer and businessman, is the public face of the push to reach tradespeople who may not yet have focused on the new reporting rules. The workwear offer includes high-visibility jackets, polo shirts, and stretch holster trousers intended for site use.

Making Tax Digital for Income Tax is part of the government's wider effort to move tax administration onto digital systems. For affected sole traders, this means maintaining digital records and submitting quarterly returns using compatible software rather than relying on traditional methods.

Sage's polling suggests many sole traders see potential benefits in the change despite uncertainty over compliance. Almost two-thirds of UK tradespeople surveyed (61%) said they believe Making Tax Digital will make their tax returns more accurate.

Asked whom they would trust most to help them understand the new rules, 35% chose digital accounting platforms such as Sage. The result supports the company's argument that software providers will play a central role in helping smaller businesses adapt to the new system.

"There's already enough admin pressure on sole traders trying to run a business day to day. A lot of people still don't realise these tax changes are coming, so this is about helping tradespeople get ready with the right support and tools before the deadline hits," said Gary Neville.

Software shift

The changes matter especially for sole traders above the income threshold who have not yet moved their bookkeeping onto digital platforms. Sage describes its Sole Trader product, previously known as Sage Individual, as software that helps sole traders organise income and expenses, manage cash flow and prepare for tax reporting.

The survey was conducted among 500 UK sole traders aged 18 and over. While the sample is relatively small compared with the wider market, the findings add to broader concerns among software companies and advisers that many self-employed workers remain unclear about the practical steps required before the new rules take effect.

Official figures cited by Sage put the number of sole traders in the UK at 3.1 million. On that basis, even a modest shortfall in awareness or readiness could leave a substantial number scrambling to adopt digital record-keeping and reporting tools in the run-up to the deadline.

For tradespeople, the issue is likely to land alongside day-to-day pressures, including client work, invoicing and rising costs. The survey suggests tax administration remains a lower priority for many, especially when knowledge of the rules is limited, and software use is uncommon.

"Many sole traders are still unaware of how significant this change will be. Making Tax Digital is designed to modernise the tax system, but for many businesses, the biggest challenge is simply knowing what they need to do next. We wanted to create a campaign that cuts through, helps sole traders understand what is needed from them and takes them to the places where they can get the support," Lisa Ewens, SVP Product, Small Business and Accountants at Sage, said.