Policy Expert Highlights Small Business Readiness Gap at Parliamentary Reception

Daniel Woolf, Head of Policy and Government Relations at Enterprise Nation, attended a parliamentary reception in the House of Commons this week that brought together representatives from business groups, policymakers and professional services organisations to discuss small business priorities.

The event, hosted by Sage and Checkatrade and sponsored by Samantha Niblett MP, featured contributions from the Exchequer Secretary to the Treasury, Dan Tomlinson MP. Discussion at the reception included preparation for the rollout of Making Tax Digital (MTD) for Income Tax, a government programme that will affect many sole traders and small businesses in the UK from April 2026.

Woolf noted that data shared at the event indicated a significant readiness gap among small businesses ahead of the digital reporting changes. According to figures highlighted during the reception, only around 30 per cent of sole traders were considered to have strong awareness of the upcoming MTD requirements, while approximately 37 per cent had not heard of the programme. The statistics also pointed to continued reliance on manual finance management, with more than two-thirds of respondents using spreadsheets and around a third still using pen and paper for core record-keeping.

Where accounting software is already used, attendees cited benefits including clearer views of business finances and improved cash-flow tracking — data points that illustrate practical challenges and opportunities for smaller firms as they prepare for the transition to MTD reporting.

Enterprise Nation, a UK small business support organisation, engages with policymakers to highlight issues affecting small and medium-sized enterprises and to promote resources and guidance for members of its business community. Woolf’s participation in the parliamentary reception underscores ongoing dialogue between government, software providers, business groups and enterprise support organisations on the operational impacts of policy implementation.

Further details on Making Tax Digital and support available for small businesses preparing for the changes are published by HM Revenue & Customs and business support bodies.