Despite the difficult economic climate, higher taxes and new regulations, new research from Qdos suggests many of the UK’s freelancers remain confident about the year ahead.
The findings are based on responses from self-employed individuals across a range of sectors.
In this article, the term “freelancers” is used broadly to include sole traders and limited company contractors.
Most freelancers feel positive about the year ahead
The study, based on responses from more than 600 self-employed workers, found that 57.19% are confident about their business prospects in 2026. Of those surveyed, 11.63% were very confident, and 45.56% were fairly confident.
A further 16.48% said they felt indifferent about the year ahead.
Just over a quarter (26.33%) expressed concern, including 15.51% who were fairly concerned and 10.82% who said they were very concerned.
Confidence persists despite tax and market pressures
The survey results may seem counterintuitive, given the pressures many freelancers and small business owners are under.
Competition for work remains high in several sectors, with rate pressure and longer gaps between contracts reported by both sole traders and limited company contractors.
At the same time, rising costs and weak demand in parts of the economy have made it harder to plan ahead.
Most individuals and businesses in the country have been affected by a wide range of tax hikes over the past few years, including:
- Successive increases in dividend taxes (including the 2p hike from April 2026).
- The ongoing effect of the 2023 Corporation Tax hike.
- The effects of increased employers’ NI from April 2025 (which has decreased clients’ budgets for freelancers).
- Frozen income tax bands and thresholds (i.e. fiscal drag).
Making Tax Digital set to change how freelancers report income
For sole traders and landlords, a major change is on the way in the form of Making Tax Digital for Income Tax.
The new MTD rollout takes effect in April 2026 for sole traders with a turnover of £50,000 or more, introducing quarterly digital reporting obligations and a requirement to keep digital tax records.
This is another administrative task for the self-employed to take on board.
However, another survey suggests that those affected will end up saving time on keeping up with their tax records, as digital accounting software will provide more benefits in the long run.
Calls for greater support for the self-employed
It takes a certain amount of bravery to go it alone, and for many ByteStart readers, the need to be in charge of their own destiny is so strong that they are naturally resilient, whatever the economic backdrop. The survey backs this up.
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Qdos says this confidence highlights the role freelancers play in supporting flexibility across the UK labour market.
Commenting on the findings, Seb Maley, CEO of Qdos, told us today:
For too long, the UK’s smallest businesses have been seen as an easy target by government – the very reason millions of self-employed workers have been bearing the brunt of tax rises. It’s time for a change of tack. Rather than make it harder to work this way, this year the government needs to create a fairer tax system that encourages and incentivises people to strike out alone.
With around 4.2 million people now working for themselves in the UK, the survey highlights a gap between how confident many freelancers feel about their prospects and the increasingly complex tax and regulatory framework they must navigate.
How long that confidence lasts will likely depend on whether future policy changes make self-employment simpler or more costly to operate. Has the government’s massive tax grab finished? Will there be greater focus on encouraging entrepreneurialism over the next year or two? Only time will tell.
