KAREN JOY BACUDO

Finance Editor

Taxfix has found that many UK sole traders are changing their business structure or considering a return to salaried work because of Making Tax Digital. The findings suggest the policy is affecting self-employment beyond tax reporting.

According to the tax app company’s data, nearly a quarter of sole traders affected by the rules have already set up, or started setting up, a limited company because of Making Tax Digital. A further 57% said they had considered doing so.

The figures suggest a reform intended to expand digital tax reporting is also shaping decisions about legal structure. For sole traders, incorporation brings a different set of accounting, filing and compliance duties, even if some see it as a way to manage the burden of the new reporting system.

The survey also found that 45% of respondents had considered leaving self-employment and returning to permanent salaried work because of Making Tax Digital. That points to a possible effect on business formation and the size of the self-employed workforce at a time when policymakers remain focused on growth and productivity.

Age appears to influence how people are responding. Among 18 to 24-year-olds, 29% said they had already set up or begun setting up a company at least partly because of Making Tax Digital, compared with 28% of those aged 25 to 34. The share fell to 21% among 35 to 44-year-olds, 20% among 45 to 54-year-olds and 14% among those over 55.

A similar pattern appeared in views on returning to employment. Six in 10 respondents aged 18 to 24 said the tax changes had made them consider going back to salaried work, compared with 48% of those aged 25 to 34, 43% of those aged 35 to 44, 39% of those aged 45 to 54 and 40% of those over 55.

Record keeping

The research indicates that many sole traders are still adjusting to the practical demands of digital record keeping. Four in 10 said they had started keeping digital records but were not confident they were doing it correctly, while 46% said they were using compatible software and felt ready to submit.

That split suggests awareness has improved, but confidence remains uneven as quarterly reporting approaches. For some businesses, the challenge appears to extend beyond software adoption to the wider time and administrative demands of staying compliant.

The survey found signs that the changes are already affecting day-to-day business decisions. While 39% said they felt more on top of their finances, 29% said they had become more cautious about taking on new work, 25% said they had raised or planned to raise prices to cover the extra administration, and 19% said they had delayed plans to grow or invest.

The figures suggest a mixed picture. Some sole traders say digital reporting is helping them manage their finances more closely, while others appear to be limiting activity, passing on costs or postponing expansion.

Employment concerns

For those considering leaving self-employment, moving back into a salaried role is not seen as straightforward. More than a third, or 37%, said they were worried they would struggle to find a job that matched their current income.

The main concerns were lower income, cited by 41%, followed by a competitive labour market at 32%, age discrimination at 31%, spending too long outside traditional employment at 29%, and fears that employers might view self-employment negatively at 24%.

This suggests Making Tax Digital may be putting pressure on workers who do not see an easy alternative in the wider labour market. It also raises the prospect that some may be changing their business structure not because it suits their commercial needs, but to avoid extra administrative strain.

“Making Tax Digital was meant to modernise the system. Instead, our research suggests it’s pushing many to change their business structure or leave self-employment entirely. What’s particularly concerning is that with nearly a quarter (23%) of sole traders setting up, or starting to set up, a limited company, incorporation is increasingly being viewed as an escape route. But incorporation isn’t a shortcut to less admin. Limited companies face their own complex filing obligations, with a broader set of tax, accounting and filing requirements. While closing the tax gap is an important goal, if sole traders respond to MTD by incorporating, the policy could instead push businesses outside the very system it was designed to bring them into. The focus now must be on simplifying the system and making compliance achievable, not something to be worked around,” said Oliver Harcourt, Senior Director, Taxfix.

SOFIAH NICHOLE SALIVIO

News Editor

Optimizely has published research showing that 75% of UK consumers find the marketing they receive irrelevant, highlighting a widening gap between consumer expectations and marketers’ ability to meet them.

The survey covered 1,000 UK consumers and 100 UK marketers. It found that many consumers are frustrated by generic, repetitive and poorly targeted messages, while marketers say time constraints, fragmented data and disconnected systems are limiting their work.

Among consumers, 69% said the marketing they receive is often generic or not tailored to them. The same proportion said they often receive duplicate messages or emails from brands, suggesting repetition remains a common problem across channels.

Volume is also an issue. Some 61% of consumers said they feel overwhelmed by the amount of marketing they receive, while 56% said it is becoming harder to find brands that communicate in a useful and engaging way.

The findings suggest poor relevance is starting to affect how people respond to brands. Nearly half of consumers, or 42%, said they disengage when content feels irrelevant, and 35% said they are more likely to unsubscribe from emails and other marketing communications after a poor or irrelevant experience.

Marketer pressures

On the marketing side, the research suggests many teams are under pressure to produce campaigns without the resources they need. Six in 10 marketers said they often have to launch campaigns without enough time or data to optimise them.

More than half, or 54%, said they move from one campaign to the next without enough time to evaluate performance properly. Another 66% said managing multiple tools and platforms creates unnecessary work.

This points to a structural problem for marketing departments trying to meet rising demand for more relevant communications. Consumers want messages that reflect their interests and behaviour, but marketers say the systems behind campaign planning and delivery are often disconnected.

In practice, that can leave brands sending more communications without improving quality. Repetition, weak targeting and poor timing can all reduce a campaign’s value, especially when consumers already feel inundated by promotional material.

AI questions

The research also touches on the role of artificial intelligence in marketing. While AI tools have been widely adopted to help teams produce content more quickly, the findings suggest speed alone has not solved the relevance problem.

One executive at the company linked the issue to how the technology is being used. “Consumers can tell when marketing wasn’t made for them, and our research shows they’re tuning it out because of it,” said Tara Corey, SVP, Marketing at Optimizely.

Corey added: “The irony is that AI was supposed to help fix this, but so far, it’s mostly just helped marketers make more of the same. The real opportunity isn’t more content, it’s better content, and that means using AI to clear away the busywork so marketers can actually focus on strategy and creativity again.”

The data comes as many brands try to balance automation with pressure for better customer engagement. Businesses have increased their use of email, mobile alerts and digital advertising, but consumers appear to be drawing a sharper distinction between communications they find useful and those they dismiss.

For marketers, the results suggest the challenge is no longer simply reach or frequency. The more pressing issue is whether organisations can organise their data, tools and workflows well enough to send messages customers consider relevant.

The findings also show that when that does not happen, the commercial risk is immediate: 35% of consumers said they are more likely to unsubscribe from marketing communications after a poor or irrelevant experience.

Dutch coffee-making giants Jacob Douwe Egberts (JDE) announced last year that its plant off Ruscote Avenue in Banbury, would shut.

The factory is home to an honours board made up of plaques honouring those who worked there for 30 or more years.

The long-service Honours Board, with over 600 names of employees who worked for more than 30 years, is a key part of the factory’s history.

JDE is preserving the legacy of its Banbury factory before its closure, including preserving the original plaques.

Campaigners have been working for over a year to get their own plaques back, or their families plaques back.

Now, the company and Cherwell District Council have confirmed plaques will be displayed for the community.

Councillor Lesley McLean, Leader of Cherwell District Council, stated the council’s support for preserving these “historic items” in recognition of the factory’s contribution to Banbury.

Gordon Boffin, partner of Jo Mobley who has been instrumental in the campaign to return the plaques, said the recipients and their families just want them back.

Jo Mobley is attempting to reunite more than 600 others on the board with theirs, as well as her fathers

Ms Mobley has started the Facebook page ‘help reunite 30 years service plaques from JDE’.

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Workers for JDE coffee plant, which has closed (Image: Contributed)

The Facebook group has more than 230 followers with workers and family members alike trying to retrieve the plaques.

Talking to the BBC, she said: “It started as a very small mission and its ended up very big – it’s snowballed into finding more than 600 names.”

“I would like every person, or as quite a few have passed away, any of their families to be reunited with their plaques,” she said.

The group was working with the Labour MP for Banbury, Sean Woodcock, to retrieve the plaques.

The original plaques from the factory and the Bird’s cockerel gates to the factory are familiar landmarks in Banbury.

The gates will also be displayed to the community following the closure.

The factory, which opened as a General Foods plant in 1964, produced household brands like Bird’s Custard, Kenco, and Tassimo.

JDE Peet’s is also donating over £24,000 to various local organisations, including Banbury Young Homelessness Project, The Sunshine Centre, Banbury Museum, and The Horton General Hospital.

The funds were partially raised by auctioning equipment from the site.

The factory also have an over 18-year long partnership with Katherine House Hospice in Adderbury, which it has donated more than £62,000 to.

The company has pledged to continue providing the hospice with coffee for the next two years.