The government should spread self assessment tax deadlines throughout the year, rather than setting a single date for entrepreneurs to file their returns, according to the Federation of Small Businesses (FSB).

As thousands of entrepreneurs prepare for the tax deadline tomorrow, the FSB urged the government to make some “common sense” changes to make the system easier for taxpayers.

Worryingly, an estimated one million self-employed people could miss the 31 January deadline this year and face an automatic fine of £100 each.

The FSB claimed that it would benefit both entrepreneurs and the Inland Revenue for tax return deadlines to be spread evenly across the year, with similar types of taxpayers grouped together.

The business lobbyists criticised the current tax deadline for being too close to Christmas and said that the self-employed should be able to file their tax returns within a year of their accounting date.

Other measures suggested by the FSB include:

  • A facility to pay income tax by direct debit in monthly instalments.
  • A facility to pay over the internet using a credit card. Last year only 325,000 out of nine million people filed their tax returns online and the FSB believes that the Inland Revenue should do it all to encourage electronic filing.
  • A single point of contact in a local tax office, rather than call centres, to assist people completing their returns.

Simon Sweetman, of the FSB’s taxation unit, said that more and more people are leaving filing in their tax return until the last two weeks before the deadline.

“The problem gets worse every year and the system is then clogged for months to come.

“It makes sense to me to allow different types of taxpayers to file their returns at different times of the year,” he said.