Tax season has arrived, and the year ahead looks set to be one of the most challenging and unpredictable in recent times. The Autumn Budget has introduced a series of measures that will directly impact the cash flow and tax planning landscape for many clients supported by credit brokers.
Rising salaries and earnings are expected to push more individuals into higher tax brackets. Dividend tax rates are increasing. Property and savings income will be taxed separately - and at higher rates. Upcoming changes to capital allowances will also influence how businesses plan their investments. Each measure carries its own impact, and together they will shape financial decisions well into 2026 and beyond.
Compounding this, economic pressures remain persistent: inflation is still higher than expected, day-to-day operating costs for businesses continue to climb, and confidence in the wider economy is mixed. As a result, many completing tax returns in the coming years are likely to face substantially higher tax bills with far less room to manoeuvre when it comes to managing payments.
Self-Assessment season is here
Across the market, brokers are supporting an increasingly diverse mix of clients - from sole traders and contractors to company directors, self-employed professionals and those with savings. For many, the Self-Assessment tax return represents one of the most significant financial events of the year, and the timing could not be more difficult.
January, and often the first quarter of the year, also brings a natural squeeze on liquidity. Companies face business rates, payroll commitments, supplier invoices, stock purchases, and early-year investment plans. When cash flow is already tight, a substantial tax bill can be the deciding factor that forces businesses to cut back, delay projects, or fall back on overdrafts and other higher-cost borrowing.
Given the changes in the Autumn Budget, these pressures are only likely to intensify. More clients will feel the weight of a larger-than-expected tax bill going forward at a moment when their cash reserves are potentially least prepared to absorb it.
Financing for tax bills: A clear opportunity for brokers
Against this backdrop, the demand for structured, flexible ways to fund tax liabilities is set to grow. For brokers, this is more than a commercial opportunity - it is a chance to demonstrate leadership, deepen relationships and offer solutions that directly address the most pressing financial concern many clients face each year.
Brokers who embrace this moment can position themselves as partners who understand the realities of the modern tax environment and can guide clients toward more predictable, sustainable financial planning.
Flexible Tax Financing: The right solution at the right time
Premium Credit’s position is straightforward: a tax bill should never undermine personal financial stability or halt a business’s progress. By spreading Self-Assessment and wider tax payments over manageable instalments, Brokers’ clients gain breathing space at a time of year when liquidity matters most.
For brokers and their clients, the advantages are significant:
Maintain cash flow and protect working capital - funding a tax bill means clients don’t have to drain reserves or rely on overdrafts. With costs rising across the board, preserving cash has never been more important.
Retain momentum and safeguard growth - when liquidity is protected, businesses can continue to invest, purchase stock, fulfil orders and maintain operational pace - even as they meet their tax obligations.
Strengthen your role as a trusted adviser - providing funding when clients need it most shows insight and understanding. It encourages forward planning rather than last-minute reaction and reinforces long-term, advisory-led relationships.
Provide resilience against future uncertainty - With the tax landscape shifting, from dividend and property-income tax changes to evolving allowances, spreading payments gives clients both stability and time to assess how these changes affect their future plans.
Take the Initiative
With another demanding January upon us, one message is unmistakable: tax bills are unavoidable, but the strain that often accompanies them doesn’t have to be. By supporting clients with Premium Credit’s tax-funding solutions, brokers can help businesses and individuals stay financially agile, resilient and firmly in control of their cash flow.
This is about more than merely arranging finance. It involves promoting stronger financial planning, making space for better decision-making, and giving clients the confidence to focus on running their businesses and managing their personal finances more effectively rather than being preoccupied with a single, burdensome tax payment.
To learn how the Premium Credit tax team can support you and your clients, contact me; Richard Crossland - Head of Tax, or a member of our Account Management team on 0207 191 2079 or tax@pcl.co.uk.
Written by: Karl Leitelmayer, Sales Director – Tax, Premium Credit
