Capital Finance Group
Tax & VAT Loans
Tax and VAT loans spread the cost of a large tax bill, such as Corporation Tax, VAT or PAYE, into manageable instalments. Rather than taking a significant sum out of working capital in one go, you settle HMRC on time and repay the lender over an agreed period.
Speak to a Business Finance SpecialistTax & VAT Loans
A tax loan can be a sensible planning tool when used carefully. We will help you consider whether it is the right route for your situation, and how the repayments sit alongside your other commitments, before introducing you to a suitable lender.
Who it suits
- Businesses facing a larger-than-expected VAT or Corporation Tax liability
- Companies that would prefer to protect their cash reserves for trading and growth
- Seasonal businesses whose tax payments fall at a quieter time of year
- Firms that want to avoid falling behind with HMRC
How it works
- The lender typically pays HMRC directly or provides the funds for you to do so
- Repayments are usually spread over a short term, often up to around 12 months
- Facilities are commonly unsecured and assessed on trading history and accounts
- Because tax bills are predictable, facilities can often be arranged in advance of the due date
Things to consider
- Borrowing to pay tax adds a cost, so compare it with alternatives such as an HMRC Time to Pay arrangement
- Personal guarantees from directors are common
- Lenders may be cautious if there are existing arrears with HMRC
- Plan ahead: applying well before the payment deadline gives you more options
Got a tax bill coming up? Speak to an expert about spreading the cost.
Finance is subject to status and lender criteria.
Interested in Tax & VAT Loans?
Got a tax bill coming up? Speak to an expert about spreading the cost.
Speak to a Business Finance Specialist