VAT Loans & Corporation Tax Loan

VAT and corporation tax are unavoidable, but they can wreak havoc on your cash flow. Receiving an unexpected bill or discovering you owe more than you thought adds to the stress of owning a business.

Many business owners miss payment deadlines, incurring additional expenditures in late payment fees, which can add up over time.

We can help with VAT finance if you don’t have the working capital you need to pay your company’s tax and VAT obligations.

A VAT loan or company tax finance solution can preserve your cash flow and help you to meet your legal obligations to HM Revenue and Customs, whether you missed your payment deadline or are scheduled to pay your bill.

What is a VAT Loan?

A VAT loan is a type of financing that allows businesses to pay their quarterly VAT invoices on time. VAT loans are a beneficial solution for businesses that are struggling to meet their value added tax obligations because they allow for monthly payments.
Many alternative finance companies are aware of the difficulties that come with growing VAT and tax payments. Even the most stable enterprises can face a hefty bill, especially if they modified their trading or purchasing practises in the previous year.
Financing VAT invoices and tax returns allows you to properly manage your operating capital so you can keep your business running smoothly.

Taking out a loan to pay a VAT bill is a legitimate option for funding your tax obligations. Tax and VAT financing is a quick and easy solution to pay your invoices and avoid penalties. Instead of paying the loan in one big payment, you can pay it back in regular instalments. A variety of financing alternatives are available to meet a variety of business requirements.
Many business owners pay their VAT return to HMRC on a quarterly basis, and VAT financing is available if you need extra funds to make these payments. When your company has a slew of additional financial obligations to satisfy during the year, planning ahead might help relieve stress.

If you have to pay annual corporation tax, it’s a good idea to set aside enough money throughout the year to cover the obligation. However, many firms find this difficult, and it is easy to get caught off guard.
Our choice of finance alternatives will assist you cover this annual charge and repay a business loan over regular monthly payments if you find yourself in a situation where you lack working cash or your cost is larger than planned.

How does it work?

When you don’t have enough working capital to pay your invoices and meet your legal duties, VAT finance can help. A VAT loan allows you to satisfy your tax obligations on time and spread the cost of these expenditures over a manageable duration.

Every three months, businesses are required to file a VAT return. VAT finance might be used if your company’s cash flow is limited and you’re anxious about paying the quarterly bill. When you apply, you might be eligible for an unsecured business loan, which means you won’t have to put up any collateral.

Unsecured VAT loans are available for a short period of time, to coincide with HMRC’s three-month accounting cycle.

However, you may choose to employ a secured business loan, which has lower repayment fees but requires the use of a property or other asset as collateral. Longer-term tax loans are available for up to five years, allowing you to spread your payments out over time.

What are the benefits?

You have a legal obligation to pay VAT and tax to HMRC as a business owner. A VAT loan is intended to assist you in managing these recurring expenses by spreading the cost over a set period of time in affordable monthly instalments. VAT loans and corporation tax finance have numerous advantages:

Pay your tax bills on time – VAT finance, also known as tax finance, allows you to pay your bills on time, pay off any outstanding tax debt, and manage your cash flow throughout the year without having to pay a large sum quarterly or annually.

Rolling credit facility – You can use VAT money as a rolling credit facility in specific instances. This means that instead of confronting large expenditures when your next VAT payment arrives, you can spread the cost over a longer period of time, lowering the need to pay the HMRC in one flat sum.

Avoid fines and penalties from HMRC – Late payments might result in surcharges. If you do not pay your VAT bill by the due date, you will be charged a surcharge of 2% of the unpaid tax. VAT loans help you avoid late payments and keep your tax obligations to a minimum.

Improve firm cash flow – A VAT loan divides the total amount due into smaller monthly instalments. This will allow you to better manage your cash flow, resulting in you being able to use your cash on other areas of the business for growth.

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Do you qualify?

To be eligible for a VAT loan, your company must be registered in the UK and have at least a 12-month trading history. If you haven’t been trading 12 months we can still look at alternative funding options.

What are the benefits of a bridging loan?

The tax situation of each business is different. As a result, VAT loans are designed to meet the needs of each individual. You should prepare the following documents to aid the decision-making process and speed up your application to make it easier for each party:

Once approved, your funds can be with you within 24 hours

What is a corporation tax loan?

A corporation tax loan works in the same way as a VAT loan. It is utilised to assist in the payment of your company’s annual corporation tax. Corporation tax loans divide the overall tax bill into smaller, fixed monthly instalments rather than paying it all at once.

Corporation Tax Loans

When should I use a corporation tax loan?

Your corporation’s tax obligation is usually paid in one lump sum. Paying one major corporation tax payment can impose a strain on cash flow for certain organisations, especially if the year has been difficult and the company is struggling financially.
A corporate tax loan allows you to extend your corporation tax payments out over a longer period of time, typically 6 to 12 months. It’s a wonderful alternative for companies looking to boost their working capital and avoid fines and penalties for late or non-payment.
Small firms in the UK can get corporation tax financing from a number of lenders. These alternative finance companies can provide both unsecured and secured funding, allowing HMRC payments to be spread out over time.
If you’re thinking about getting corporation tax financing for your company, fill out our quick online application form. Our specialists will then assist you in locating the best VAT finance lender for your company.


When do you pay corporation tax?

Before you file your business tax return, you must pay corporation tax. Unlike other taxes, the corporation tax deadline is determined by the accounting period of your company.
The deadline to pay corporate tax is nine months and one day after the conclusion of the previous financial year’s accounting period.
Please be aware that certain payment options take longer to reach HMRC than others. Corporation tax can be paid online or via phone transfer. You should account for the time it takes to complete your chosen method to guarantee that your corporation tax is paid on time.


How quickly can I expect the money to arrive?

The decision-making process can take as little as a few hours, and financing can arrive in as little as 24 hours.
It is critical for businesses to ensure that tax payments are made on time. Failure to pay business taxes on time will result in interest charges and, finally, a petition for forcible closure.

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