That could bring close to two years’ worth of tax payments into a much shorter period, putting extra pressure on business finances.
Some businesses are already borrowing at rates of 11 per cent to cover gaps in their cashflow, nearly three times the Bank of England base rate, the FSB said. A double payment year would add to that strain.
Irregular earnings could make the change particularly difficult for self-employed workers.
The FSB said: “Self-employed people often experience intermittent irregular payments, a veritable ‘feast or famine’, with a big payment one month, then low income for the next few.”
Claire Tindal, 57, an executive coach and school inspector from Devon, left a 30-year teaching career in 2023 and has experienced those pressures.
Ms Tindal said: “I had a feast period over the summer, but I am in a famine period where a load of invoices have gone out, but I haven’t been paid yet.”
She added: “The bank account has got a bit of dust at the bottom of it.”
Ms Tindal said she has limited savings after taking out a mortgage to buy her ex-husband out of their home, and would struggle to absorb an additional tax demand in 2029.
