VAT Loans, PAYE & Corporation Tax Finance

We can help you ease the burden when it comes to paying VAT, PAYE or corporation tax bills.

GET A QUOTE

   4.5/5

Over 90% of businesses recommend us.

We help support British Businesses
We are official members of the NACFB
We are official members of the FSB

Paying VAT, PAYE and corporation VAT is unavoidable, but it can cause major issues to your cash flow. Receiving an unexpected bill or finding you owe more than you anticipated adds to the pressure of running your own business.

With over 2.6 million private sector businesses registered for VAT or PAYE, many business owners end up missing payment deadlines and incurring more costs in late payment charges, and these can escalate over time.

If you lack the working capital you need to meet your company tax and VAT liabilities, we can help with our tax loans product. Whether you have missed your payment deadline or are due to pay your bill, a VAT, PAYE and Corporation Tax finance solution will protect your cash flow and enable you to fulfil your legal obligations to HM Revenue and Customs.

What is a VAT loan? How does VAT and Tax finance work? What are the benefits of VAT and Tax finance? How much does a VAT/tax loan cost? Does my business qualify? What will be required by the lender? I need to get a tax loan and repay it over a longer period. Is this possible? Can I use a business loan to pay corporation tax and other tax liabilities? Can a Tax loan be used to cover 100% of a VAT bill? How quickly can I finance a tax bill? Is it just a loan to pay a tax bill in the UK? What is a VAT bridging loan? What happens if I can’t pay my VAT bill?

What is a VAT loan?

Many alternative finance providers understand the challenges associated with mounting VAT and tax bills. Even the most stable businesses can incur an unexpectedly large bill, especially if they have changed the way they trade or purchase goods during the previous year. Financing VAT bills and tax returns enables you to manage your working capital effectively so you can continue to run your business with total peace of mind.

Small hair salon business paying company VAT bill

Loans to pay VAT bills

Getting a loan to pay a VAT bill is a viable way to fund your tax payments. Tax and VAT Financing offers an efficient way to pay these bills and avoid costly penalties. You can then repay the finance in regular instalments, rather than in one lump sum. Finance options are available to accommodate a host of business needs.

Many business owners pay their VAT return to HMRC on a quarterly basis and, if you require an additional injection of cash to meet these payments, VAT financing is available. Planning ahead really helps to take the pressure off when your business has a host of other financial commitments to meet throughout the year.

If you are required to pay annual corporation tax, it is best practice to allocate enough funds throughout the year to cover the bill. However, this can be difficult for many businesses, and it is easy to get caught out.

If you find yourself in a position whereby you lack working capital or your bill is higher than expected, our range of funding options can help you meet this annual charge and repay a business loan over regular monthly instalments.

How does VAT and Tax finance work?

Tax and VAT Financing fills the gap when you lack the level of working capital required to meet your bills and legal obligations. A VAT loan facility enables you to meet your tax liabilities on time and spread the cost of these bills over regular instalments, all within a manageable timeframe.

You may qualify for an unsecured business loan, which does not require you to offer an asset as security against the loan. Depending on your personal circumstances and trading history, you could access a business loan of between £10k and £150k. You may decide, however, to use a secured business loan whereby the repayment costs may be more favourable but you have a property or other asset secured against the loan.

What are the benefits of VAT and Tax finance?

As a business owner, you may be legally obliged to pay VAT and tax to HMRC. A VAT and tax loan facility is designed to help you manage these recurring expenses and spread the cost over an agreed term in manageable, monthly instalments.

Pay tax bills on time - VAT Finance or Tax Financing as it is commonly referred to, allows you to pay your bills on time, clear any outstanding tax debt and control your cash flow throughout the year without having to pay out a quarterly or annual lump sum.

Rolling credit facility - In some cases you can use the VAT funding as a rolling facility. This means instead of facing big bills at the time of your next VAT bill, you can spread the cost across a longer period of time, reducing the requirement to part with a ‘lump-sum’ when it comes to paying the HMRC.

How much does a VAT/tax loan cost?

When the lender reviews your application, they will determine whether it is a low risk or a high-risk deal. If your business is in sound financial shape, then the lender may issue you with competitively priced rates with no additional security required. If on the other hand, your business has poor credit, you may still qualify for a tax loan. However, the interest may be higher, and you may need to offer additional security against the borrowing.

In some cases, the lender may also need a personal guarantee which means in the event of defaulting on the borrowing you could be personally liable to repay the loan and even lose personal assets. Make sure that when you are applying for a tax loan, you understand fully the liability you face if you were to fail to repay the loan.

Does my business qualify?

To qualify for a business VAT loan, your business must be registered in the UK and have a trading history of at least twelve months.

We can also help identify the right VAT funding solution if you are due to make your PAYE and pay your rent. If you experience a seasonal shortfall, such as in the New Year or at Christmas, we can find the right finance to support you and your business.

Remember: If you are not eligible for VAT and Tax Financing, we can still help to identify the most suitable funding option for your business. To consider the benefits of other alternative financial products, please view our range of funding options here.

What will be required by the lender?

Each tax circumstance is different for each business, so the loans are tailored to suit your individual needs. In order to help the decision process and speed up the application and make it easy for each party, you should prepare your paperwork.

Such documents could include evidence of your:

  • VAT return
  • Business Bank Account Statements
  • Company Accounts
  • Plus any information about the directors of the business

Once the lender has seen this information together with your completed application, you could receive the Tax funding in as little as 24 hours.

I need to get a tax loan and repay it over a longer period. Is this possible?

Longer-term tax loans are available for up to five years, meaning you can spread out the repayments over a longer period.

Can I use a business loan to pay corporation tax and other tax liabilities?

Yes, it’s also a business loan to pay corporation tax and includes self-assessment tax, partnership tax and other tax and VAT bills.

Can a Tax loan be used to cover 100% of a VAT bill?

Yes, it is possible for a VAT facility loan to cover 100% of a VAT bill. Alternatively, you can use the tax funding as a cash injection to help you repay your full tax liability to the HMRC.

How quickly can I finance a tax bill?

The application process takes just a few minutes. The decision process can be just a couple of hours, and in some cases, the funding can be with you in as little as 24 hours.

Is it just a loan to pay a tax bill in the UK?

Yes, the tax loan is used to pay tax liabilities in the UK only.

What is a VAT bridging loan?

A VAT bridging loan helps property developers raise finance over a short term to cover any VAT element that could be due on the purchase of a commercial property. Sometimes such property purchases can have complex tax implications, and VAT could be an additional liability. A VAT bridging loan can provide property developers with the finance they need to complete on a commercial deal.

What happens if I can’t pay my VAT bill?

If you think your business will struggle to pay VAT on time, you should contact the HMRC as soon as possible to arrange an affordable repayment option. However, if you fail to pay your tax bill, then you can incur penalties.

A VAT Loan could be an option for you to bring immediate working capital into your business to help pay your tax.

To find out if you qualify for VAT and Tax Finance, please complete our short online application, and one of our team will contact you with a decision from one of our trusted alternative finance providers.

Fleximize logo
Iwoca logo
liberis logo
ldf logo
bibby financial services logo
365 business finance logo