Nearly a Quarter Contemplate Resigning Amid MTD Turmoil
With fewer than seven days until the 6 April deadline, many self-employed people face rising confusion over the Making Tax Digital reforms. New survey data shows large gaps in knowledge among those due to join the scheme in April 2026.
Survey findings
Taxfix surveyed 1,000 sole traders earning over £50,000. Filmogaz.com reviewed the results and compiled the main statistics.
| Sample | 1,000 sole traders earning over £50,000 |
| Know they must use HMRC-recognised software | 34% |
| Believe annual tax return is abolished | 36% |
| Think tax must be paid four times a year | 24% |
| Say their accountant did not explain MTD properly | 53% |
| Will be more cautious about taking extra work | 28% |
| Expect to spend more time on admin per month | 27% |
| Considering returning to full-time employment | 23% |
| Feel anxious, confused or forgotten | 48% |
What respondents misunderstand
The survey reveals multiple myths about MTD. Many sole traders mix up reporting requirements and payment timings.
- Only a minority know digital software is mandatory for the threshold group.
- Over a third wrongly think the annual return will disappear.
- Nearly a quarter mistakenly believe tax payments now occur quarterly.
Myth versus reality
- Myth: Annual tax returns are gone. Reality: A final annual declaration remains required.
- Myth: You must pay tax four times a year. Reality: Quarterly updates record income and expenses, not payment schedules.
- Myth: MTD increases tax bills. Reality: It changes reporting, not tax rates.
- Myth: Spreadsheets are sufficient. Reality: Above the threshold, HMRC-recognised software is required unless bridging tools are used.
Professional reaction and risks
Oliver Harcourt, Senior Director at Taxfix, raised concerns about HMRC’s readiness. He warned the department has not yet delivered an effective self-assessment system.
Harcourt said moving many users to quarterly reporting creates complexity. He suggested current arrangements may favour HMRC more than sole traders.
Accountants now act as navigators, not just filers. Many professionals face compliance fatigue and increasing client questions.
Behavioural impact
The confusion has economic consequences. Over a quarter say they will cut back on taking extra work.
Almost one in four are thinking of leaving self-employment or returning to salaried roles. This reaction shows the human cost of MTD turmoil.
Support measures
Taxfix is offering tools and a month of free MTD support to help affected sole traders. The burden of education, however, remains with the professional community.
Filmogaz.com will continue to monitor developments as the 6 April date approaches. Nearly a quarter of respondents contemplate resigning, highlighting the urgency for clearer guidance.
