Tax Loans UK: Spread Corporation Tax, PAYE & Self Assessment
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: A tax loan settles your Corporation Tax, VAT or PAYE bill with HMRC directly on the due date, then you repay the lender over 3 to 12 months, so your HMRC payment can be made on time and your working capital stays intact. We place tax loans from £5k to £500k, and can model this against Time to Pay.
A tax loan works differently from most business finance. The lender does not put money in your account, it pays HMRC directly on your behalf on the due date. You then repay the lender in monthly instalments, typically over 3 to 12 months. That distinction matters because your tax is settled on time regardless of your cash position that week, and HMRC never sees a late payment.\n\nCorporation Tax is the most common use. A profitable £2m-turnover business might face a £80k to £120k CT bill due nine months after its year end, which often lands in the middle of a quiet trading quarter. A tax loan spreads that liability so the business keeps its working capital intact.\n\nSelf Assessment, PAYE, and National Insurance contributions can all be funded the same way. The assessment tells the lender exactly what is owed, which is one reason these deals tend to move quickly: there is no ambiguity about the liability, so underwriting has less to question.\n\nThe honest comparison is with HMRC Time to Pay. TTP currently charges base rate plus 2.5%, which sits around 7.75% at the time of writing. Tax loans can cost more on an annualised basis, but they avoid putting an arrangement on your HMRC record, and they do not require you to negotiate with HMRC at all. For some businesses, that is worth paying for. We cannot tell you which is cheaper without knowing your specific rate, so we will model both when you come to us. CoreFi is a broker, not a lender, so we place your case with the funder whose pricing and terms fit it best.
Key Benefits
- The lender settles HMRC on the due date, so late-payment penalties and interest never arise, whatever your bank balance looks like that day
- Corporation Tax, Self Assessment, PAYE, and employer NIC can all be funded under one facility rather than a piecemeal arrangement with HMRC
- Because the liability is a fixed, documented amount, underwriting has little to argue with, so well-prepared cases tend to move faster than working-capital lending
- Spreading a £80k to £150k tax bill over 10 to 12 monthly instalments frees up cash for payroll, supplier terms, or growth spend during the repayment window
- Security is not usually required at the amounts most SMEs deal with; the tax liability itself is what the lender underwrites against
Frequently Asked Questions
Which taxes can be funded with a tax loan?
Corporation Tax is the most common. Self Assessment income tax (including Payments on Account in January and July), PAYE, and employer National Insurance contributions are all eligible. Some lenders will also fund business rates. The rule of thumb: if it is a fixed, documented government liability with a due date, it can usually be funded.
Is a tax loan cheaper than HMRC Time to Pay?
Not always. HMRC TTP currently charges roughly 7.75% (base rate plus 2.5%). Tax loans can sit above that on an annualised basis, particularly for smaller amounts or shorter terms where arrangement fees carry more weight. The trade-off is that TTP puts an arrangement on your HMRC compliance record and requires you to agree terms with HMRC directly. Some businesses and their accountants would rather keep that record clean. As a broker we will model the cost of both options for your specific liability so you can decide.
Can I use a tax loan for Payment on Account?
Yes. The January and July Self Assessment Payments on Account are eligible. This comes up most often when the prior year was a strong one, the payment on account is calculated on earnings higher than the current year, and the cash simply is not sitting there ready. A tax loan bridges that gap cleanly.
What if I am disputing my tax assessment?
HMRC still requires payment by the statutory deadline even while you are appealing. A tax loan keeps you compliant during the appeal. If HMRC upholds your appeal and you have overpaid, the refund comes back from HMRC in the normal way, and you continue repaying the lender from that or from cash flow.
Do I need to have filed my return to apply?
For Corporation Tax, most lenders want a filed return or at minimum a calculated liability confirmed by your accountant. Self Assessment is similar. PAYE can be funded on the basis of the amounts showing in your HMRC Business Tax Account. We will tell you exactly what document pack a specific lender needs before you apply.
Related Funding Options
Tax Loans for Professional Services Firms
Spread Corporation Tax and partner Self Assessment bills for UK law firms, consultancies and professional practices. We place tax loans across the market.
Tax Loans for Technology Companies
Spread your Corporation Tax bill over 3 to 12 months and keep cash in the business for product and headcount. Tax loans for UK SaaS and tech companies.
VAT Loans UK: Spread Your Quarterly VAT Bill
A VAT loan pays HMRC on your behalf and you repay in monthly instalments over 3 to 9 months. We place VAT loans from £5k to £500k for UK limited companies.
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.