Many tradespeople unprepared for new digital tax reporting rules, study finds
Tradesman Saver found that around 61% of tradespeople currently manage their accounts themselves, while just 21% said they use an accountant or bookkeeper.
Hundreds of thousands of self-employed tradespeople and builders are set to take on additional administrative requirements under the Government’s Making Tax Digital (MTD) reforms, adding to existing financial pressures, according to research from Tradesman Saver.
The changes will require many sole traders to maintain digital records and submit quarterly tax updates, marking a significant shift in how finances are managed across the sector.
The research found many may be unprepared for the transition.
Around 61% of tradespeople currently manage their accounts themselves, while just 21% said they use an accountant or bookkeeper.
A further 17% said they rely on a partner or spouse to handle their finances.
The reforms come at a time when tradespeople are already facing rising costs.
The data revealed that fuel and transport (45%), household inflation (39%) and energy bills (34%) were among the biggest financial pressures.
Cashflow was also a concern, with one in five (20%) reporting issues caused by late or missed payments.
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