Tax Loans UK
Large tax bills — Corporation Tax, PAYE, and Self Assessment — can create significant cash flow pressure, especially when due dates coincide with other business expenditure. A tax loan spreads the payment over monthly instalments, typically 3-12 months, so you maintain working capital for day-to-day operations.
The lender pays HMRC directly, ensuring your tax is paid on time and avoiding late payment penalties. Tax loans are assessed quickly because the liability is a known, quantifiable amount — making them faster to arrange than general business loans.
Key Benefits
- Spread large tax bills into manageable monthly payments
- Avoid HMRC late payment penalties and interest
- Lender pays HMRC directly — guaranteed on-time payment
- Fast approval — typically within 24-48 hours
Frequently Asked Questions
Which taxes can be funded with a tax loan?
Corporation Tax, Self Assessment income tax, PAYE, and National Insurance contributions can all be funded. Some providers also fund business rates and other government charges.
Is a tax loan cheaper than HMRC Time to Pay?
HMRC Time to Pay (TTP) charges interest at base rate + 2.5% (currently ~7.75%). Tax loans may charge more, but they avoid the administrative burden and HMRC scrutiny associated with TTP arrangements. A TTP also appears on your HMRC record.
Can I use a tax loan for Payment on Account?
Yes. Self Assessment Payments on Account (January and July) are eligible. This is useful when the payment on account exceeds your available cash due to higher prior year income.
What if I disagree with my tax assessment?
If you are appealing an assessment, you are still required to pay by the deadline. A tax loan ensures compliance while the appeal is processed. If successful, the overpayment is refunded by HMRC.
Related Funding Options
Tax Loans for Professional Services Firms
Spread Corporation Tax and partner tax bills for UK consultancies, law firms, and professional practices.
Tax Loans for Technology Companies
Spread Corporation Tax bills for UK SaaS and tech businesses. Keep cash available for product development and hiring.
VAT Loans UK
Spread the cost of your quarterly VAT bill. VAT loans for UK businesses from £5k to £500k with terms of 3-9 months.
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Learn About Our Broker NetworkCoreFi 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.