All small businesses and the self-employed will have to move from annual tax returns to a mandatory quarterly digital tax reporting by 2020 under proposals being considered by the government.

While some businesses will prefer a digital tax model, others will struggle. The FSB is concerned about the impact mandation will have on small business owners like myself.

Our research has shown that on average businesses already pay £3,600 a year to ensure they are compliant with their tax obligations.

This is likely to increase if every small business owner is compelled to report in this way.

So the FSB is asking business owners how they feel about the idea of mandatory quarterly tax reporting.

What will it mean for you in terms of time and expense? Do your current systems have the information that allows for this?

We want to make sure the government fully understands the pressures this will create and encourage them to think again about the ‘mandatory’ element of their proposals.

If you feel strongly about this proposal, we suggest you write to the Financial Secretary to the Treasury outlining the impact the change will have on you and your business.

Address your letter to the Financial Secretary to the Treasury, 1 Horse Guards Road, London SW1A 2HQ. Ask the government to ensure that any decision to proceed with quarterly tax reporting is on a voluntary basis.

You could also send a copy of your letter to your local MP.