“We can help fund your tax or VAT bill whilst leaving enough cash for you to run your business. A tax or VAT loan will spread the cost of your obligations to HMRC into a monthly affordable payment.”
Richard Huxley Director
VAT and corporation tax funding
A corporation tax or VAT loan can help free up cashflow for investment in other areas of your business, whilst meeting the demands of HMRC.
VAT and corporation tax funding
explained
Having working capital is vital to take advantage of business opportunities that come your way. Tax and VAT loans are becoming an increasingly popular way to release cashflow, allowing funds to be invested back into your company for business development and growth.
Whatever your business type, Huxley Corporate Finance can support you in finding a finance solution to spread the cost of your tax or VAT bill over a 3 to 12 month term, whilst avoiding HMRC late payment charges.
Simply put, a corporate tax or VAT loan can help you to free up cash for investment in other areas of your business.
VAT and corporation tax funding made simple
VAT and corporation tax loan facility is quick and easy to set-up, whatever your business type, enabling you to release cashflow by spreading costs over a set time period. Here’s how:
- Unsecured lending
- Protects your working capital
- Fixed monthly repayments available from 3-12 Months
- Payment made to HMRC directly or to your bank account — you choose!
- Protects existing bank facilities
- HMRC receive payment on time, meaning no penalties!
VAT and corporation tax funding FAQs
Why should I consider a VAT loan?
VAT is a legal requirement and payment is not optional. Not paying VAT can result in a late payment fine and the HMRC could use various recovery processes to secure the payment owed. There may be times when you lack the funds to pay your VAT due to unexpected costs, cash flow issues and a need to save money for an investment purchase.
What are the benefits of a tax loan?
A tax loan (for VAT or corporation tax) typically offers:
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Cash flow flexibility — you can preserve liquidity for day-to-day operations or growth investments.
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Avoidance of fines or interest from HMRC — paying late can incur penalties, so spreading the cost helps ensure timely compliance.
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Fixed repayment period — many facilities offer terms from 3 to 12 months, giving certainty of cost.
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No need to tap into other funding sources — it avoids disruption to existing credit lines or overdrafts.
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Direct payment option — you may choose for the facility provider to pay HMRC directly, reducing risk you miss a deadline.
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Unsecured options available — some facilities do not require collateral.
Are there any disadvantages to a tax loan?
Yes, there are some considerations and risks:
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Interest and fees — this form of borrowing carries a cost, which may be higher than more traditional funding forms.
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Commitment to repayments — you must ensure your future cash flow can support monthly repayments without causing strain.
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Possibility of default or penalties — if payments fail, you may still face HMRC consequences.
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Credit impact — lenders will typically carry out credit checks; an adverse history may affect terms or eligibility.
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Limited term — most facilities are short-term, so this isn’t a substitute for long-term funding needs.
What will I need to provide when applying for a tax loan?
To apply, you’ll generally need:
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Your latest VAT return (or HMRC VAT bill)
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Corporation tax assessment if seeking CT funding
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Recent business bank statements
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Financial statements (profit & loss, balance sheet)
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Cash flow forecasts or projections
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Proof of identity of directors and shareholders
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Details of company registration and ownership structure
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Existing credit history and possibly references
How often can I have a VAT loan?
You can typically take out a VAT loan each time you have a VAT liability due (e.g. each quarterly VAT period), subject to lender approval. In other words, there’s no hard limit on frequency — as long as each application satisfies the lender’s credit and affordability criteria, you may access the facility multiple times.