Tax Funding Solutions
Tax funding is a strategic financial tool designed to help business owners and professionals manage mandatory HMRC liabilities without exhausting cash reserves. By converting substantial annual or bi-annual tax bills into predictable monthly repayments, you maintain the liquidity needed to reinvest in your operations and scale your business consistently.
Whether you are facing a Corporation Tax deadline or a Self-Assessment peak, these facilities provide the "breathing space" required to stay compliant. This proactive approach ensures that HMRC is paid in full and on time, protecting your business from the risk of late-payment surcharges, interest, or the need for restrictive "Time to Pay" arrangements.
At a Glance: How Tax Funding Works
- Flexible Repayments: Choose from 3, 6, 9, or 12-month terms to suit your cash flow.
- Corporation Tax: Fund your annual Ltd company profit liability in a timely manner.
- Self-Assessment: Combine January and July payments into one manageable facility.
- Unsecured Lending: Access capital quickly without the need to leverage business assets.
- Preserved Capital: Keep your business profits working for you rather than sitting with HMRC.
- Direct Settlement: Option to have funds sent directly to HMRC for total peace of mind.
Terms Available
- Duration 12 months
- Facility £5,000 to £5,000,000
- Purpose Tax Bill Financing
- Decision 24 - 48 Hours
Steps to Apply for Business Funding
Apply Online
Complete our simple online application form in just a few minutes with basic details about your business.
We will contact you
Our dedicated UK-based specialists will review your application and discuss your specific funding requirements.
Get Decision
Receive a fast credit decision, usually within 24-48 hours, keeping downtime to an absolute minimum.
Receive Funds
Once approved, funding is transferred quickly to your business account so you can start growing right away.
How Tax Finance Supports Stability
A company typically utilises tax funding to prevent a large, annual or bi-annual liability from disrupting its operational momentum.
Rather than allowing a significant percentage of business profits or personal income to leave the bank account in one lump sum, tax funding converts these heavy obligations into manageable monthly repayments.
This ensures that capital remains available for day-to-day expenses, stock investment, or strategic growth.
By spreading the cost of Corporation Tax or Self-Assessment, businesses can maintain a consistent cash reserve. This approach provides financial "breathing space," ensuring that HMRC is paid in full and on time without the need for complex "Time to Pay" arrangements or the risk of incurring late payment penalties.
FAQs
Why finance a tax bill if the business is profitable?
Tax is calculated on past profits, but that cash may already be reinvested in the business, tied up in stock, or held in unpaid invoices. Financing your tax bill allows you to keep that cash working for you today, rather than depleting your reserves to settle a historical liability.
What are the common types of Tax Funding?
Corporation Tax
Spread your annual Ltd company profit liability over 3, 6, 9, or 12 months to protect your working capital.
Self-Assessment
Combine your January and July instalments into a single 12-month facility, providing year-round budget certainty.
How does this prevent "late payment" risks?
HMRC is notoriously strict regarding deadlines. By securing a tax loan, the funds are often sent directly to the tax authorities on your behalf. This guarantees you meet your legal obligations on time, avoiding automatic surcharges, interest, and potential investigations into your financial standing.
Who is eligible for Self-Assessment funding?
This facility is specifically designed for those whose tax is not taken at source, including sole traders, partners in a partnership, and directors. It allows you to smooth out the spikes of the traditional bi-annual payment cycle into a predictable monthly expense.