Britain’s self-employed workers are losing the equivalent of 17 hours a month, or more than five working weeks a year, to business admin tasks, time that could otherwise generate an extra £3,000 annually, according to new research commissioned by Virgin Money.
The survey of 500 self-employed workers and small business owners found that nearly half (45%) “dread” tax return season and put it off for as long as possible. Over half (53%) said it was the most stressful time of the year, while almost half (49%) agreed their quality of life would improve if business admin were easier to manage.
Managing client communications, logging receipts and expenses, and filing tax returns were cited as the biggest time drains.
The findings highlight the scale of the challenge facing small business owners as the government prepares to implement its Making Tax Digital (MTD) initiative next April.
More than one in five (21%) respondents said they had missed collecting a payment from a client because of admin overload, while 16% admitted they had failed to pay a supplier on time due to paperwork piling up.
Nearly half (47%) said they still used their personal current account for both business and personal finances, while 57% did not use any accounting software or apps to manage their finances.
“Doing your tax return doesn’t have to be daunting, but our research shows it’s a real headache,” said Simon Norman, Head of Business Banking at Virgin Money. “Many see tax admin as the biggest stress of their jobs. Government changes are on the way, so it’s important those affected are aware of what’s coming and are ready for a smooth switch to digital tax returns.”
The poll found widespread unawareness of the upcoming MTD changes. From April 2026, self-employed people earning more than £50,000 will be required to switch to digital-only tax returns, with those earning over £30,000 following in 2027.
Nearly half (45%) of respondents said they were unaware of the new rules, and 63% did not realise they would need to submit quarterly updates on their income.
In response, Virgin Money is offering six months’ free access to accounting software Xero for customers of its M Account for Business, a Moneyfacts five-star-rated online business bank account with no monthly fee and 0.25% cashback on all debit card purchases.
“It’s essential self-employed people prepare now so digital-only returns don’t come as a shock,” Norman added. “Having a dedicated business account and the right tools can make the process smoother and save time that could be spent growing their business.”
The study also found that 45% of respondents consider business admin the worst part of being their own boss, and more than a fifth (22%) have considered returning to employment to escape it.
As Britain’s 4.3 million self-employed workers navigate the digital transition, the findings underscore the need for greater support to help them balance compliance with productivity — and ensure that admin doesn’t continue to eat into both their time and income.
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