Bridge the quarter, preserve the cash.
Short-dated facilities to fund VAT, PAYE and corporation tax. Smooth the lumpy HMRC quarter and keep working capital where it earns.
Quick estimate
See an indicative repayment
Indicative monthly repayment
£4,500 to £5,625
Illustration only, based on a range of typical total costs. Actual pricing depends on trading history, sector, term, amount and credit profile, and differs between providers.
A VAT quarter, a PAYE month or a corporation tax instalment can take a healthy operating account and leave it thin. Bridging the quarter at fair cost is often a more efficient use of capital than running close to the line.
Short-dated facilities may be sized against the HMRC liability and structured across the year. Availability, timing and terms depend on the business, verification and written offer.
Best suited for
- Quarterly VAT obligations
- Monthly PAYE and NIC
- Corporation tax instalments
- Time to Pay arrangement refinancing
How it works
Tell us the liability
Share the amount due, deadline and relevant business details for an initial review.
Structured offer
We size the facility to the bill and propose a term that clears comfortably.
Written terms
Review the cost, schedule and conditions before accepting and arranging payment to HMRC.
Eligibility at a glance
A short list of the information commonly considered. Eligibility and available terms depend on the individual business and facility.
- UK-registered limited company or LLP
- Trading for at least 6 months
- Minimum £10,000 monthly turnover
- A UK business bank account
- Director ID and 3–6 months of bank statements
- No active formal insolvency proceedings
Careful with your data, clear about your terms.
Commercial lending sits outside the FCA perimeter, so the protections of a regulated agreement do not apply. We set out how we work so you can judge it for yourself.
Your data is used to assess your enquiry, never sold or passed on for third party marketing.
Every page and every submission is served over TLS.
Where used, access is read only through FCA authorised providers and can be revoked at any time.
Finance for UK registered businesses and business purposes, not consumer credit.
The initial form is an enquiry. If a credit search is needed later, its type and impact will be explained first.
Total repayable, term, fees and any security stated in writing before you sign.
Why a VAT or tax loan often makes sense
A VAT quarter, a monthly PAYE run or a corporation tax instalment is a lumpy outflow against a smooth revenue profile. Paying it out of operating cash is not free, it is a decision to hold less working capital for the next quarter.
A short-dated facility sized to the HMRC liability lets the business keep its operating buffer intact, spread the tax over the quarter the revenue was actually earned, and avoid the friction (and cost) of an HMRC Time to Pay arrangement.
VAT vs PAYE vs corporation tax, different rhythms
VAT is quarterly (or monthly for larger filers). PAYE and NIC are monthly. Corporation tax is annual for most, quarterly for larger companies. Each has a different payment deadline and different penalty regime, HMRC surcharges VAT default at 2% escalating to 15% under the current points-based regime.
Structuring the loan term to clear inside the same tax year keeps the facility clean on your P&L and avoids the compounding effect of stacking one quarter over another.
When Time to Pay is the better answer
For small liabilities (under £30,000) with a temporary blip, HMRC's online Time to Pay portal can be a cheaper option than any commercial loan. It is worth trying first for genuinely one-off shortfalls.
A commercial VAT loan wins when: the liability recurs (so a TTP would too), the amount is large enough to trigger surcharge risk, or the business wants to keep its HMRC record clean for future filings.
VAT / tax loan vs alternatives
| Option | Cost shape | HMRC record | Best for |
|---|---|---|---|
| VAT / tax loan | Fixed rate, 3–12 mo | Not disclosed | Recurring or larger bills |
| HMRC Time to Pay | 3.5% + interest | Disclosed | One-off, < £30k |
| Unsecured short-term loan | Fixed rate, 1–18 mo | Not disclosed | Multi-purpose bridging |
| Business overdraft | SVR variable | Not disclosed | Very short bridging |
A representative example
- VAT liability
- £50,000
- Term
- 6 months
- Representative APR
- 13.9%
- Monthly repayment
- £8,673
- Total repayable
- £52,038
- Total cost of credit
- £2,038
Illustrative only. Rate depends on trading, sector and file strength.
Explore by need
What do you need funding for?
Bridge a cash flow gap
Cover a quiet month or a slow paying customer.
See options →Pay a VAT or tax bill
Spread a large HMRC bill over a set term.
See options →Buy stock or equipment
Spread the cost of a known purchase.
See options →Card takings business
Repayments that follow your card sales.
See options →Grow online revenue
Funding linked to monthly revenue.
See options →Expand or hire
Fixed monthly repayments over a set term.
See options →Frequently asked
Can I fund a VAT or corporation tax bill?
Yes. Short-dated facilities to bridge VAT, PAYE and corporation tax quarters are a common use of our term and unsecured products.
How quickly can funds be available for HMRC?
Timing depends on the information supplied, verification, acceptance and any conditions in the written offer. The business remains responsible for paying HMRC by the deadline.
Will HMRC see this on my file?
No. The facility is a private commercial loan and does not appear on your HMRC record.
Is there an early settlement fee?
On most VAT and tax bridging facilities there is no penalty for settling early. You pay only interest accrued to the date of repayment.
Related guides
Authoritative UK references
Independent sources cited on this page.
- HMRC, Pay your VAT bill GOV.UK
- HMRC, Time to Pay arrangements GOV.UK
- HMRC, Corporation Tax GOV.UK
- HMRC, VAT surcharges & penalties GOV.UK
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