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The FSB Calls Proposed Monthly Tax Payments ‘Completely Unworkable’
The Federation of Small Businesses has criticised proposals for monthly or quarterly self-assessment payments from 2029. What it means for sole traders’ cash flow.
Sole traders could be asked to pay tax more often. The Federation of Small Businesses has called the proposals completely unworkable, and its warning is about cash flow.
What happened
According to a CPA business news roundup on 9 November, the proposals would require affected taxpayers to make monthly or quarterly payments from 2029, rather than the traditional twice-yearly instalments. The FSB describes them as completely unworkable, warning that the transition could leave some self-employed people facing overlapping tax obligations.
The roundup says the Office for Budget Responsibility estimates the changes could bring forward around £17bn in Treasury receipts during 2029/30, and that critics argue businesses with seasonal or irregular earnings could be forced to borrow. James Salmon, operations director at CPA, says the changes could create significant cashflow challenges for smaller businesses.
These are proposals, not law. Speak to your accountant about what applies to you.
Why it matters
For a business with steady monthly income, more frequent payments are an accounting change. For one with uneven months, they are a funding problem. How you price and bill decides which group you are in.
What it means for your brand
- Smooth your income. Retainers, deposits and subscriptions make cash flow predictable. Our marketing strategy for small business guide covers how to sell them.
- Keep customers longer. Repeat work is cheaper than new work. See customer lifetime value for small business.
- Look established. A clear brand supports the prices that make this workable. Start with branding for small businesses, then talk to us about small business branding.
Cover photo by Jakub Żerdzicki on Unsplash.
