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Making Tax Digital is driving 45% of sole traders to consider quitting
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The figures paint a stark reality for sole traders, who are already facing mounting financial pressures and red tape.
45% of sole traders would rather quit than comply with MTDAs the government steams ahead with its Making Tax Digital plan, sole traders are voting with their feet, with Taxfix data finding that 45% would rather return to full-time employment than comply with the reporting requirements.
Having officially launched on April 6, the plan requires sole traders to keep digital records and submit regular updates through compatible software.
Despite the government’s intentions of creating a simpler, more efficient tax system, the message from the findings is clear: the mandatory Making Tax Digital push risks having the opposite effect, while potentially driving entrepreneurs away from self-employment altogether.
To make the process as seamless as possible, we recommend using HMRC-approved Making Tax Digital software to help you manage your income and expenses throughout the year.