VAT and Corporation Tax loans are a great way to maintain a healthy cash flow. These loans provide fixed and affordable monthly payments, making it much easier to keep control over your finances.

How does a VAT loan work?

Our fast and affordable VAT loans, starting from £10,000+ are a great way to avoid the sting of your quarterly VAT liability.

Firstly, you will need to apply for the loan and get credit cleared. You can expect this to take between 24-48 hours.

Then, providing you are creditworthy, we will look to get your VAT funded within just 24 hours! Payment will be made directly to HMRC– saving you all the hassle! You will then make 3 affordable monthly repayments back to us. Repayments usually start 30 days after the agreement has gone live. This then in turn will protect any harm made to your cash flow from the brunt of VAT.

How do Corporation Tax loans work?

The process of applying for a Corporation Tax loan is quick and simple. We will need some information from you such as your company accounts, potentially management figures and your last three months bank statements.

Once you have signed the simple and easy to read loan document, we process the information. Then we arrange for HMRC to be paid directly from the bank using your unique tax reference.

Our funders have undertaken thousands of these Corporation Tax loan agreements in the past, so it is all perfectly acceptable with HMRC.

You then make a regular loan repayment until the loan is repaid in full. You can pay over a term of three months up to ten months, depending on what you would like to do. Normally, the repayments start a month after HMRC have been paid.

We are seeing an increase in popularity in our VAT and corporation tax loan facilities because they offer you:

• Cash flow relief especially at a time when overheads are high whilst we all endure the cost-of-living crisis
• Industry leading rates
• Fast payment
• An alternative funding line
• Approval within 24hrs
• Fixed monthly payments
• 5* customer service

Contact Us

If your cash flow could do with a bit of TLC, please don’t hesitate to get in touch. Give us a call on 01494 956 871, or drop an email to [email protected] and a friendly member of the team will get back to you in no time.

You must register your business for VAT if your business meets the following criteria:

• Your business’ taxable turnover exceeds £85,000 in the past 12 months
• You expect it to exceed the turnover threshold in the next 30 days.

What is the VAT taxable turnover?

The VAT taxable turnover is the total value of VAT included sales. Therefore, this should include sales that attract VAT at the standard or reduced rates. Or even those sales that are zero rated. Just not sales that are exempt from VAT.

Exceptions

An exception would be exceeding the threshold temporarily. So, should you exceed the VAT registration threshold but expect that your next VAT taxable turnover will not exceed the deregistration threshold (£83,000) you can appeal to HMRC by writing to them with supporting evidence of why you believe you will not exceed the deregistration threshold in the next 12 months.

HMRC will the review your appeal and either send you a letter of acceptance of your appeal or they will register you for VAT.

Voluntary registration

As stated above, registration is mandatory if your taxable VAT turnover goes over the threshold. But if your VAT taxable turnover is below the threshold you can still register for VAT voluntarily. Some businesses that supply zero-rated goods choose to do this due to the benefits of reclaiming VAT on purchases.

How to get registered

You can apply online at gov.co.uk, or you can register by post by using the VAT1 form.

Although please bear in mind that there are additional forms to be completed for certain businesses such as those applying to the agricultural flat rate scheme.

You will then receive a registration number once your application has been processed. This will be then followed by a VAT registration certificate within 30 day of registering.

Most businesses are able to register online on the Gov.uk website. In certain cases, registration must be done by post, for example, if you apply to join the agricultural flat rate scheme.

You will receive a VAT registration number once you have been registered for VAT. You should receive a VAT registration certificate within 30 days.

What it means to be a VAT registered company

Once you are registered you will then have to charge VAT appropriately on any sales that you make. Additionally, you can reclaim any VAT that you are charged on business purchases.

You must also remember to file VAT returns each quarter. But we can help with this. We can pay HMRC directly for you. Meaning that you can spread the cost of your VAT liability over the course of 3 months, ensuring that your cash remains flowing with ease.

Contact Us

If you are interested in protecting your cash flow against the sting of your tax liability, please do get in touch. We offer VAT loans, as well as corporation tax loans at industry leading rates allowing you to keep your precious cash in the business. Why not give us a call today on 01494 956 871. Or send an email to [email protected] and a friendly member of our sales team will get back to you.

As we all know, the last few years haven’t been easy for any of us. What haven’t we faced in our experience of the 20s? From pandemics, to war, to inflation, and even scorching first-hand experience of climate change. These past couple of years have been eventful to say the least. And businesses especially have suffered the brunt of it.

Throughout this blog I will be listing a few top tips on how to make your cash flow with ease.

Cash flow forecast

Cash flow forecasting is a great way to maintain control over your cash flow. It gives you a good idea of your monthly ingoing and outgoings so that you can plan you purchasing with that in mind. Read more about cash flow forecasting here.

Take advantage of finance options

Many are unaware of the benefits that financing provides. Finance allows you to keep cash in the business to be used elsewhere. So, whether you need to pay off a tax bill or invest in new equipment for the business, finance is a great way to do this without causing any harm to your cash flow.

We offer affordable financing for corporation tax as well as VAT loans. So instead of paying upfront and in full, we allow you to spread the cost over a period of time.

But it doesn’t stop there, our parent company, WestWon is a well-established provider of asset finance. Leasing is an effective way to obtain the latest equipment without breaking the bank.

Send invoices out ASAP

The quicker you send out the invoice to your client the better. This way, the likelihood of you getting paid on time or even early is increased! Although, it is also important that you have constructed your invoice in a way that is easy for your client to understand. With emphasis on including the date as well as outlining clear instructions on forms of payment.

Conduct customer credit checks

By doing this, you will be able to make better judgement in customers by checking their credit before making that sale. If the customer has a poor credit score you can prepare yourself for late payments and set interest rates accordingly.

Contact Us

Should you wish to explore your business finance options, please give us a call on 01494 956 871. Or send an email to [email protected].

Below is a case study about a client of ours who organised, and continues to organise, a short term loan with us to pay their VAT bill. In our VAT Loans case study we discuss who they are. We also discuss why they chose to organise a loan and why they decided to undertake it with us. The information collected came directly from the Finance Director. This is so that we can offer the best information and advice to you. If you and your business are thinking of organising a VAT Loan for your next VAT bill, then please don’t hesitate to contact us. A member of our friendly team will be more than happy to help.

A bit about them

We have been working with this company since 2012. However, their journey started in 2003 when they started trading. They are a mid sized firm of architects and so far we have arranged four short term loans for them every year. As we have been doing this for many years now, we have developed a strong relationship with many of the employees and will continue to develop these over the next many years working with them.

The four short term loans we have been providing have been used to cover both their quarterly VAT bill and their HMRC Corporation Tax. For the VAT bill the repayment term is always 3 months. However, we usually defer the first repayment for a month after when the bill was paid. For the Corporation Tax loans they were mixed. One was repayable over 6 months and another 2 were over a 1 year period.

Comparing HMRC VAT Loans to a bank loan

In this case, a bank loan would actually work out to be cheaper. This is therefore a very viable option for our client to take. However, there are a few challenges that comes with this. They charge a one off administration fee, usually 1% of the loan amount. The same applies for an overdraft. There is also a mountain of paperwork as well as an increase in the time it would take to organise it. But the real reason our client chose to go through us here at VAT Loans was so that they could have an alternative funding line. This means they wouldn’t have to use up an existing bank facility. Going back to a bank manager every quarter can send the wrong message as well. We also take care of all the admin for you. We pay HMRC directly so there is no stress on your behalf.

Paying your bills on time

Like any other business in any other sector, this firm of Architects want and need to pay their VAT bills on time. Their business is profitable and they are looking to expand soon. As shown above, they are a very successful business, which is why even they are open to using short-term VAT loans. They are using it to build on their successes as opposed to a loan term financial planning issue. Their view on the situation is that it is cheaper than receiving a fine. This is as well as being much simpler and more flexible than a bank loan. Therefore, for all the reasons above, we hope to continue working with them long into the future!

Contact Us

If you would like more information on our VAT Loans Case Study, then head over to our contact page on our website to speak to a member of our team. Furthermore, if you would like to talk to us over the phone then please call 01494 956 871 or email [email protected].

Here at VAT Loans we offer finance for a range of things and hope to help you in your business’ finance journey. We will provide you with a 5* customer service experience and we will tailor the agreement to fit you and your needs. We offer finance for a range of business loans which you can read more about below. Hopefully this blog will show you the benefits not just to working with us here at VAT Loans, but also to leasing in general. If you would like to know more, then please read on.

What do we offer finance for?

Here at VAT Loans it may not surprise you that we focus a lot on arranging VAT Loan agreements! However, you may not know what else we can finance. We offer finance for a range of business loans. These include Corporation Tax Loans, Professional Indemnity Insurance funding and Bridging VAT finance. We can also provide finance for professions loans, equipment loans, dilapidation loans, working capital and peer-to-peer loans. We have explained some of these in a previous blog. Offering a wide range of business loans is possible due to our team of professionals here at VAT Loans. Although some of the business loans have different processes, they are all easy and straightforward to complete. Therefore, don’t hesitate to get in touch with us using our contact details at the bottom of this blog.

Why choose VAT Loans?

VAT Loans has helped thousands of customers with their finance agreements. Below are just a few reasons why you should choose us to help with your next finance agreement.

• Industry leading rates from 2.5%
• Decision in 48 hours or less
• 95% acceptance rate
• 5* customer service
• Dedicated account manager

What will finance do for your business journey?

There are many benefits to leasing and finance, one of them being how it helps your cash flow. It allows you to keep funds in the business and use them elsewhere for other projects. Another is that you are able to use alternative funding lines. Instead of using an existing bank facility, you can open up other sources of funding. This will look better too when applying for loans. The process is also fast and simple. We pay HMRC directly for you so that there is no hassle or worry form your end. There is also an easy to use repayment schedule as we use fixed monthly payments. This also allows you to budget better as you know what is coming out of your bank account and when.

Contact Us

For more information on how we can help you with your business’ finance journey or for a free no obligation quote, please give a member of the VAT Loans team a call on 01494 956 871 or email us on [email protected].