Tax Loans for Manufacturers
By Joshua Giles, Founder and Director · Reviewed by the CoreFi credit team
Last updated 20 July 2026
CoreFi is a broker, not a lender. We do not set rates and lenders make all credit decisions.
In short: £10k - £500k over 3 - 12 months. Corporation Tax for a manufacturer is always badly timed.
Corporation Tax for a manufacturer is always badly timed. Your cash is already committed: raw materials bought forward, work in progress on the floor, a new press or CNC cell recently commissioned. Then the bill lands nine months and one day after your year end, and it wants the lot in one payment.
A tax loan pays HMRC in full on the due date. You repay the lender in monthly instalments, typically over 10 or 12 months, at a fixed rate. There is no charge over your plant or property; the loan is unsecured and assessed almost entirely on the tax computation itself plus your recent filed accounts. Because the underlying liability is fixed and certain, lenders can usually turn a decision around quickly once they have the paperwork.
The mechanic matters here. You are not borrowing to fund production. You are borrowing to preserve the working capital that is already funding production. After a strong year that distinction gets sharper, because a higher profit means a higher tax bill at exactly the moment you have just reinvested the cash in capacity. The loan lets you treat the tax bill the way you treat any other large outgoing: spread it, plan it, keep the line running.
A word on cost. Lenders price these deals tightly because the credit risk is low, the liability to HMRC being fixed and certain. We are a broker, so nobody can promise you a rate up front, but tax loans consistently come in cheaper than extending an overdraft or drawing on an invoice finance facility to cover a tax payment.
Key Benefits
- HMRC is paid on time and in full, so no late-payment interest or surcharges pile on top of the original bill
- Your invoice finance and overdraft headroom stays free for stock and production instead of being swallowed by one tax payment
- Approval turns on your tax computation rather than an asset valuation, so there is no charge over plant, property, or equipment
- Fixed monthly repayments land in your management accounts as a predictable line rather than a sudden cash spike
Frequently Asked Questions
When should I apply?
Come to us two to four weeks before your Corporation Tax due date, which is nine months and one day after your accounting period ends. That leaves time to get the lender decision, draw down, and clear the HMRC payment before the deadline. Leaving it to the week before is possible but cuts it fine.
Can I fund PAYE and employer NICs through the same facility?
Yes. Manufacturers running large or seasonal workforces often use a tax loan to cover a PAYE liability too, particularly when overtime and shift premiums have pushed employer NIC higher than budgeted. The lender will want to see the liability schedule, but it is a straightforward addition.
What documentation does the lender need?
Your Corporation Tax computation, or a sufficiently detailed estimate from your accountant, your two most recent sets of filed accounts, three to six months of business bank statements, and standard company information. It is materially simpler than a general business loan because the purpose is specific and repayment is not tied to trading performance.
Should I claim all my capital allowances before finalising the computation?
Yes, and your accountant should be doing this anyway. Annual Investment Allowance on plant and machinery, full expensing on qualifying equipment, and any writing-down allowances on the pool all reduce your taxable profit before the computation is finalised. The lower the tax bill, the less you need to borrow. Get the computation right first, then come to us with the number.
Related Funding Options
Tax Loans UK: Spread Corporation Tax, PAYE & Self Assessment
Spread Corporation Tax, PAYE, and Self Assessment liabilities over 3 to 12 months. Tax loans for UK businesses from £5k to £500k. The lender pays HMRC directly.
VAT Loans for Manufacturers
Quarterly VAT bills hit hard when cash is already tied up in raw materials. VAT loans for UK manufacturing businesses spread the payment over three to nine months.
Unsecured Business Loans for Manufacturers
Unsecured business loans for UK manufacturers: fund raw materials, hiring, and contract ramp-up without charging your factory or plant. As a broker we place deals from £10k to £300k.
Business finance by location
Lender appetite varies by city and region. If you would rather start from where your business is based, these local guides cover the same funding with the local picture.
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Get matched with lendersCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.