The FPB believes Schedule D taxpayers and Corporation taxpayers should be allowed to pay their tax liability on a monthly basis.

 

OVERVIEW

At present, schedule D taxpayers and Corporation taxpayers find themselves burdened with a hefty tax bill twice a year. However, their income arrives day-by-day and week-by-week, so the imposition of two large tax bills can create serious, sometimes fatal, cash flow problems.

The counter argument would run that, as the tax is paid in arrears, companies should be putting money aside throughout the year. However, the practicality of this for smaller companies, which often need every penny in order to survive, is another matter. With so many other demands on their money, putting some aside for a future bill is often impossible.

Only by having the option to pay monthly will smaller companies be able to stay on top of their tax bill and budget effectively for the future. Schedule E taxpayers can already spread their payments out, so it is only fair that other companies should be afforded the same basic right.