VAT loans for accountants let a UK limited accountancy practice pay its own VAT bill in full and on time, then repay it over three months while client fees come in. HMRC is paid directly, and a decision is normally given within 24 hours.
VAT Loans is a credit broker, not a lender. We introduce businesses to a panel of lenders and may receive commission if finance is arranged. Finance is available to UK limited companies only and is subject to status, affordability and lender approval.
Accountants and solicitors have long been among the businesses that use VAT loans most, and VAT Loans has been trading since 2003. The reason is how VAT works for a practice. Unless the practice uses the VAT cash accounting scheme, open to businesses whose estimated VAT taxable turnover is £1.35 million or less in the next 12 months, VAT is due on fees as they’re invoiced. The VAT on a fee therefore belongs to the quarter it was invoiced in, even if the client hasn’t paid yet.
The pressure points are familiar to most practices:
The VAT return and payment are usually due one calendar month and seven days after the end of the VAT period. If the fees behind that VAT are still outstanding, the practice has a gap to fill. To see what spreading it would cost, try the VAT loan calculator or call 01494 956 871.
This example is hypothetical. A practice invoices £90,000 plus £18,000 VAT for self assessment and year-end work in December and January, ahead of the 31 January self assessment deadline. Its VAT quarter ends on 31 January, so that £18,000 adds to the VAT due by 7 March. On its 60-day terms the January invoices aren’t due until late March, and clients who pay late push many of the fees into April.
| Date | What happens |
|---|---|
| December to January | £90,000 of self assessment and year-end fees invoiced, plus £18,000 VAT |
| 31 January | VAT quarter ends, on the self assessment deadline |
| Early March | VAT loan agreed; HMRC paid in full before 7 March |
| March to April | Most of those fees are paid |
| Early April to early June | Three monthly repayments, starting about 30 days after the agreement |
The practice meets the HMRC deadline, and most of the repayments fall after the fees have arrived.
For the full process, read how a VAT loan works. Practices with a corporation tax bill can use corporation tax loans in the same way, from £8,000.
Finance is available to UK limited companies only. The practice will need to show its VAT liability and that the repayments are affordable alongside its other commitments. The lender decides whether to offer finance and on what terms. For certain professions, including accountants, a personal guarantee is not usually required. See who can get a VAT loan for more detail, and VAT loans for professionals for other professional firms.
The document checklist explains each item. Send documents only through the secure method the team confirms.
Before applying, work through each month of the repayment term.
| Line | What to include |
|---|---|
| Fees expected in the month | Invoices due, adjusted for clients who usually pay late |
| Salaries and contractor costs | Including seasonal overtime or temporary staff |
| Premises, software and insurance | Rent, subscriptions and professional indemnity renewals |
| Existing finance | Loans, leases and overdraft interest |
| VAT loan repayment | The figure from the written quotation |
| Next VAT liability building up | VAT on fees billed during the period |
| Amount left over | Should stay above the cash buffer the practice wants to keep |
If one large client paying late would leave the practice short, borrow less or ask about a different repayment schedule.
Compare the interest, any fees, the repayment dates and the total amount repayable. A lower monthly payment can cost more overall. Our guide to VAT finance lenders in the UK sets out what to check between providers.
Paying HMRC late has its own cost. HMRC charges late payment interest from the first day the VAT is overdue, at the Bank of England base rate plus 4%, and late payment penalties once the VAT is more than 15 days overdue. Our VAT late payment penalty calculator shows how those add up. If the practice cannot afford the bill at all, compare finance with an HMRC Time to Pay arrangement.
Accountants are often the first to spot a client’s VAT shortfall. If the client is a UK limited company with a VAT bill it cannot pay from cash flow, the company can apply itself: send the directors this page, or ask them to call us. The lender assesses the company, and the finance agreement is with the company.
Yes. In most cases the funds are paid directly to HMRC on the practice’s behalf once the agreement is signed.
VAT loans start from £5,000. The amount offered depends on the VAT bill, the practice’s finances and the lender’s assessment.
A decision is normally given within 24 hours of receiving the information the lender needs.
Not usually. For certain professions, including accountants, a personal guarantee is not usually required. The lender confirms its requirements when it assesses the application.
No. Lending and loan interest are exempt from VAT, so no VAT is added to the loan or to the repayments. See is there VAT on loans? for the detail.
Finance is available to UK limited companies only, so a practice that isn’t a limited company can’t apply through us. Asking HMRC for Time to Pay, covered above, may be the better route instead.
To discuss your practice’s VAT bill, call 01494 956 871 or contact us online. Finance is subject to status, affordability and lender approval.
Written by the VAT Loans team. Last reviewed September 2026.
