Technology

Half of sole traders unprepared for looming tax reporting changes, new IRIS Software Group research shows

Published

1 year ago

May 13, 2025

Almost half (45%) of UK sole traders are at risk of failing to comply with new tax legislation.Three quarters (76%) say that they feel they should be more aware of the changes.Awareness and preparedness declines with age, while younger generations are more likely to manage their finances using technology like third-party software.

LONDON, May 13, 2025 /PRNewswire/ — Nearly half (45%) of UK sole traders – representing approximately 1.4 million businesses* – report feeling unprepared for upcoming tax reporting changes, putting them at risk of non-compliance. That’s according to new research from IRIS Software Group**, who surveyed 1,000 UK sole traders.

Under the new Making Tax Digital rules, which mandate digital record-keeping and quarterly income tax updates starting April 2026, non-compliance can lead to significant penalties. These will likely match existing penalties for VAT non-compliance, which include fines of up to £400 for not using compatible software and £200 penalties for repeated late submissions, along with accruing interest charges for late payments.

Alarmingly, the study found that almost one in three (31%) sole traders have never heard of MTD, underscoring the urgent need for increased awareness and preparation to avoid potential financial repercussions.

MTD for Income Tax Self Assessment (ITSA) will require self-employed individuals, landlords and small businesses earning over £50,000 to keep digital financial records and submit quarterly updates using compatible software like IRIS Elements from April 2026. The threshold drops to £30,000 in 2027 and to £20,000 in 2028.

The changes could place a significant burden on business owners, who will be required to submit at least five updates to HMRC each year. IRIS’ study suggested an anxiousness from sole traders, with three quarters (76%) of respondents telling IRIS they wished they were more aware of the requirements. Many sole traders pointed to a lack of awareness around the changes, with a third (34%) believing HMRC could have done more to proactively inform them. Almost three quarters (74%) of respondents told IRIS they would welcome more support and guidance from HMRC to help them navigate the changes.

Others were more relaxed, with nearly a third (32%) believing they should be more aware but plan on researching it in their own time, and 7% trusting their accountants to advise them at the appropriate time.

With less than a year to go, only 23% of sole traders believed they were very prepared for the requirements.

Mark Chambers, Managing Director at IRIS Accountancy, said: “These findings highlight an important moment of opportunity for the UK’s sole traders. With MTD just around the corner, there’s a real chance for businesses to modernise their financial processes, unlock efficiencies, and gain better visibility of their income and expenses.

“It’s encouraging to see that nearly a quarter feel ready to meet the requirements, but that leaves a significant portion not experiencing the benefits of digitalised tax reporting that compliance will bring.”

Generations divided over digital accounting

Younger sole traders were more likely to feel very prepared for the forthcoming requirements and expressed greater optimism about the changes compared to older respondents. This generational divide may reflect broader attitudes toward digitalisation — with MTD representing just the first step in the government’s wider push to modernise and digitise tax and accounting processes in the years ahead.

Nearly two in five (37%) of 25–34-year-olds felt they were very prepared for April 2026, compared to 23% of those aged 35-44, and only 10% of 45–54-year-olds. Following the trend, nearly two thirds (64%) of those aged 25-34 felt the changes would have a positive impact on their approach to filing taxes, compared to 48% of those 35-44 and only 30% of respondents aged 45-54.

Younger generations were the most likely to be using third party software for managing their taxes, and the least likely to be using paper-based filing systems, highlighting the link between technology and compliance.

Overall, more than half (56%) agreed that MTD will support their budgeting and help them to avoid surprises when paying their tax bill, with younger sole traders even more likely to agree. Respondents overall were also more likely to agree than disagree that MTD changes would have a positive impact on their costs.

Mark Chambers continued: “It’s particularly promising to see younger sole traders already embracing digital tools. That trend signals real momentum for a wider transition to more efficient, tech-enabled ways of working. The next step is making sure everyone, regardless of age or experience, has access to the knowledge and resources they need to move confidently towards compliance.

“As an HMRC-recognised software provider for Making Tax Digital, IRIS is well-positioned to support both sole traders and accountants on their journey to compliance. With intuitive tools and expert guidance, we’re here to help users not only meet regulatory requirements but also embrace the wider benefits of digital bookkeeping – from improved accuracy to greater efficiency.”

For more information, visit IRIS’ MTD hub.

*Based on 3.1 million sole traders operating in the UK

**A poll of 1000 UK sole traders aged 18+ completed independently by Censuswide, commissioned by IRIS, between the 9th April 2025 and 15th April 2025.

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Technology

Alcott HR Appoints Michael Pascucci as Director of Strategic Projects

Published

2 hours ago

June 20, 2026

FARMINGDALE, N.Y., June 19, 2026 /PRNewswire/ — Alcott HR announces Michael Pascucci as Director of Strategic Projects. Michael brings over ten years of experience in HR operations and project management.

Before joining Alcott HR, he held senior roles leading technology upgrades and launching new employee benefits programs. This experience supports Alcott’s initiatives, helping the company grow while putting clients first.

As Director, Michael drives operational excellence at Alcott HR by leading strategic projects. He maintains processes to ensure Alcott stays flexible and personalized during growth. Michael focuses on projects that further enhance client support.

Improving Data Accuracy: Michael connects Alcott’s main systems with partners. Automating these connections streamlines onboarding and enrollment, ensuring benefits and payroll are accurate and secure. This gives clients confidence their information is in good hands.

Creating a Seamless Client Experience: Michael is improving how Alcott manages projects and client renewals. With consistency in these processes, Alcott delivers a seamless, dependable experience, especially during year-end reporting and enrollment.

Building for Growth: By replacing manual tasks with digital solutions, Michael helps Alcott grow with its clients. This allows the team to focus on building relationships and offering expert HR guidance to help clients achieve their goals.

“Michael doesn’t just manage projects, he builds systems that help our team excel,” said Kristen Bartolotta, Sr. Director of Operations at Alcott HR. “His ability to transform complex processes into streamlined solutions has improved our efficiency and enhanced our client service.”

“Working with the talented Alcott team has been a great experience,” said Michael Pascucci. “I’m excited to continue working across departments to improve our processes, boost efficiency, and help the company keep growing.”

Through these efforts, Michael helps Alcott deliver even greater value to clients by driving innovation, strengthening relationships, and ensuring every organization can reach its potential.

About Alcott HR: Alcott HR is an IRS Certified* and ESAC Accredited, Professional Employer Organization that provides a comprehensive range of human resources solutions to small and mid-sized businesses. With nearly four decades of experience, Alcott HR offers customized services that allow businesses to manage their workforce more effectively while staying compliant with state and federal regulations. Their services include payroll, benefits, risk management, and HR support, designed to help businesses grow and succeed.

The IRS does not endorse any particular certified professional employer organization.

Media Contact:
Sarah Zulawski
Marketing Specialist
szulawski@alcotthr.com
(716) 241-8893

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SOURCE Alcott HR

Technology

Alcott HR Appoints Michael Pascucci as Director of Strategic Projects

Published

2 hours ago

June 20, 2026

Through these efforts, Michael helps Alcott deliver even greater value to clients by driving innovation, strengthening relationships, and ensuring every organization can reach its potential.

The IRS does not endorse any particular certified professional employer organization.

Media Contact:
Sarah Zulawski
Marketing Specialist
szulawski@alcotthr.com
(716) 241-8893

View original content to download multimedia:https://www.prnewswire.com/news-releases/alcott-hr-appoints-michael-pascucci-as-director-of-strategic-projects-302805721.html

SOURCE Alcott HR

Technology

Vaultzy and Miracle University Pilot Demonstrates AI-Powered Document Management for Students. Expansion Planned for California Foster Youth Programs

Published

3 hours ago

June 19, 2026

A successful student pilot demonstrates how secure digital records and AI guidance can help them access education, employment, housing, and life opportunities

SACRAMENTO, Calif., June 19, 2026 /PRNewswire-PRWeb/ — Vaultzy, an AI-powered document management and life assistant platform, today announced the successful completion of a pilot with Miracle University, demonstrating how secure digital records and intelligent guidance can help students overcome barriers to education, employment, and economic mobility.

California State Treasurer Fiona Ma, CPA, noted, “Never expired. Never lost. Your vital documents, all in one secure place.”

For many students, particularly those facing economic hardship or life disruptions, lost identification, unavailable transcripts, and scattered paperwork can delay enrollment, employment, housing applications, financial aid, and access to public services. Vaultzy was created to address this challenge by providing a secure, user-controlled platform for lifelong document management.

Beyond document storage, Vaultzy recently launched the first version of its AI-powered Life Agent. The platform allows users to interact with their personal records and receive guidance related to major life transitions. By understanding what documents a user has available, the Life Agent can help identify requirements and next steps for education, employment, healthcare, government services, financial planning, and other important milestones.

The pilot was conducted in partnership with Miracle University, a Sacramento-based nonprofit organization dedicated to helping students who have left the traditional education system earn their high school diplomas and achieve academic and career success. The initiative focused on helping students digitize, organize, and securely manage their most important records while introducing them to emerging technologies that can support their long-term success.

“Our mission is to help students overcome barriers and unlock their full potential,” said Dr. Kadhir Raja, Founder of Miracle University. “Students need access to their documents, confidence in managing important life transitions, and guidance on what comes next. Vaultzy helps bring all of these together, empowering students to navigate education, employment, housing, and other life opportunities with greater confidence and independence.”

The pilot demonstrated the importance of giving individuals lifelong access to trusted records while providing the tools and guidance needed to use them effectively. As California State Treasurer Fiona Ma, CPA, noted, “Never expired. Never lost. Your vital documents, all in one secure place.”

Looking ahead, Vaultzy plans to continue expanding its AI-powered capabilities. “We envision a future where every individual has a trusted AI companion that not only safeguards their records but also helps guide them through life’s most important transitions,” said Avanti Ramraj, Co-Founder and Chief Product Officer of Vaultzy.

The success of the Miracle University pilot is helping inform broader discussions with educational institutions, nonprofit organizations, financial institutions, and public-sector leaders interested in modernizing how individuals manage and access trusted records while receiving guidance through important life transitions. One of the most promising opportunities is the potential application of Vaultzy within programs serving foster youth, seniors, and other underserved populations.

About Vaultzy

Vaultzy is an AI-powered document management and life assistant platform that helps individuals securely store, manage, and share important records throughout their lives. Combining secure document management, document intelligence, multilingual assistance, and agentic AI capabilities, Vaultzy is building the infrastructure for lifelong document ownership and trusted digital identity.

About Miracle University

Miracle University is a Sacramento-based nonprofit organization dedicated to helping students overcome educational barriers and achieve academic, personal, and professional success. Through mentorship, education, and community support, Miracle University equips students with the skills, confidence, and opportunities needed to transform their futures.

Media Contact
Anupriya Ramraj, Vaultzy, 1 510-255-0657, contact@vaultzy.ai, www.vaultzy.ai

Twitter, LinkedIn

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SOURCE Vaultzy