Corporation Tax Loans for UK Companies
Funding for Companies
Corporation Tax Bill
From £8,000.00
Select Repayment Terms in Months
As with all financial agreements, this quotation is subject to approval based upon the credit status of the company applying.
Pay your company’s Corporation Tax bill in full and spread the cost over fixed monthly repayments.
The Process
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. The lender then pays HMRC directly, quoting the company's 17-character Corporation Tax payment reference.
Our funders have provided thousands of Corporation Tax loans.
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 eighteen months, depending on what you would like to do. Normally, the repayments start a month after HMRC have been paid.
Corporation Tax Loan Calculator
Use our free Corporation Tax Loan calculator to get an indicative quote. Just enter the value and term. No need to complete your details. You can still apply, just click on the blue Apply now for free button.
Why get a Corporation Tax Loan?
It breaks up your bill into monthly fixed instalments and allows you to keep your cash in the business.
This loan will not affect other funding such as an overdraft or other loans / leases you may have. We use several specialist tax loan providers. Hence, existing lines of credit remain intact.
Once the loan is approved
and the documents are signed, the lender pays your Corporation Tax bill to HMRC in full.
For some companies, the other option is to negotiate repayment terms with HMRC.
They will still add on interest,
and they expect the company to reduce the debt as much as it can before they agree a plan. A loan pays the bill in full instead, with its own interest and fees.
Cash Flow
Keep funds in your business to be used elsewhere. Take control of your finances and free up valuable cash for other purposes.
Alternative Funding Lines
No need to use up an existing bank facility. This gives you alternative options to use in order to finance your loans.
Fast Payment
Payment is normally made to HMRC within 24 hours after receipt of signed documentation.
Quick and Simple to Arrange
Simple use of our free to use calculator can give you a quote in a matter of seconds. Alternatively, you can give us a call on 01494 956 871.
Fixed Monthly Payments
A fixed repayment schedule, so you know each payment in advance.
Decision within 24 hours
VAT Loans prides itself on fast and quality customer service, which is why we will have a decision to you in the first 24 hours.
What is a corporation tax loan?
A corporation tax loan is a business loan that pays a limited company’s Corporation Tax bill to HMRC in full. The company then repays the lender in fixed monthly instalments, so the bill doesn’t take a large amount of cash out of the business at once.
VAT Loans is a credit broker, not a lender, and has been trading since 2003. We arrange corporation tax loans through several specialist tax loan providers and may receive commission if finance is arranged. The loan is a separate facility, so the company’s overdraft and other borrowing stay in place.
Can my company apply?
Corporation tax loans are for UK limited companies with a Corporation Tax bill of £8,000 or more. The lender checks that the company can afford the repayments alongside its other commitments, and makes the final decision. You’ll normally have a decision within 24 hours.
How much can I borrow, and over what term?
Loans start from £8,000. Repayment terms run from three to 18 months, depending on the lender and what the company can afford. The calculator gives an indicative repayment over 6 or 12 months; ask the team about other terms.
Before you apply, check that the company can meet the monthly repayment alongside wages, suppliers, the next VAT bill and any other tax due while the loan is being repaid.
What does a corporation tax loan cost?
The lender charges interest and may charge fees. The repayment is fixed for the term, and the quotation sets out each repayment, the total amount repayable and any fees. Compare the total amount repayable, not only the monthly figure (the calculator shows both), and ask whether the loan can be repaid early and how the early-settlement amount is worked out.
Calculator figures are an indication, not an offer: every quotation is subject to approval based on the company’s credit status.
How do I compare corporation tax loan providers?
Put each quotation side by side and check:
- the total amount repayable, and every fee;
- the monthly repayment and the number of months;
- whether you can repay early, and what it costs;
- whether the lender wants a personal guarantee or other security;
- how and when the lender pays HMRC, and how you’ll know it has been paid.
What will the lender ask for?
Usually:
- the amount of the Corporation Tax bill and its due date;
- the company’s 17-character Corporation Tax payment reference for the accounting period, which is on the “notice to deliver your tax return”, HMRC’s reminders and the company’s HMRC online account;
- the company’s latest accounts, and possibly recent management figures;
- the last three months’ business bank statements.
The lender may also ask a director for a personal guarantee. Ask the team to confirm this before you apply, and make sure you understand what you would be responsible for before signing.
How and when is HMRC paid?
Once the loan is approved and the loan agreement is signed, the lender pays HMRC directly. It quotes the company’s Corporation Tax payment reference for that accounting period, so the money goes to the right bill. HMRC is normally paid within 24 hours of the signed documents being received, and the first repayment is normally due about a month later. Until the team confirms the payment, treat the bill as unpaid.
Most companies must pay Corporation Tax nine months and one day after the end of their accounting period. Companies with taxable profits over £1.5 million (a limit that’s reduced when there are associated companies) normally pay Corporation Tax in instalments instead. Apply well before your deadline, because applying for a loan doesn’t extend it.
Should I use a loan or ask HMRC for time to pay?
If Corporation Tax is paid late, HMRC charges late payment interest from the day after the deadline until the tax is paid. If the company can’t pay in full, HMRC may agree a payment plan. It still charges interest, and it expects the company to reduce the debt as much as it can first. HMRC may also ask directors to put personal funds into the business or to accept lending.
If the loan is approved and signed early enough for the lender to pay before the deadline, it pays HMRC on time instead, but it has its own interest and fees and adds a monthly repayment. Compare the total cost of each option with your accountant, including how each is treated for tax. If the company can’t afford the bill or further borrowing, get advice before taking on more debt.
Next step: use the calculator for an indicative repayment and apply from there, or call 01494 956 871 to talk through the company’s bill. If a VAT bill is also due, see VAT loans. Finance is subject to status, affordability and lender approval.
