HMRC have quoted in their tax simplification consultation paper:-
“You pay your bills monthly why not tax? As long as it’s not more expensive to do it that way” (Soletrader, SA)”
“It sounds like an attractive proposition. I wouldn’t have drawers full of receipts! It would also save me from paying a huge tax bill at the end of the year” (Sole trader, SA)
“Having regular payments for HMRC will mean [it’s] easier to balance the books and know where the business stands [for] finance” (10-49 employees, CT)
“Not knowing how much tax is due is difficult as I don’t like shocks and it may mean I don’t have the money available. Hence knowing if I’m over or under paying on a more regular basis will help, and it also helps cash flow” (2-9 employees, CT and VAT)
This is fine for some businesses, but having to pay earlier than the current 9 months post balance sheet date will be a burden for some, especially seasonal businesses who may have become dependent on the current policy and therefore may find it hard to adapt.