Sage has launched a £25,000 prize draw for sole traders as it steps up efforts to encourage preparation for Making Tax Digital (MTD) for Income Tax, due to begin in April. 

The FTSE-listed software firm’s competition is aimed at helping ease the cost of a tax bill for one winner, as millions of self-employed workers face the shift to quarterly digital reporting for the first time.

The announcement follows new research from Sage and IPSE suggesting that seven in ten sole traders are still unprepared for the change, just three months before the deadline. 

Under the new rules, sole traders will be required to keep digital records and send updates to HMRC every quarter, replacing the once-a-year system many currently use.15