I need to pay a Tax Bill
Sometimes, it’s easy to get caught up in the mission of your business and trying to expand, or maybe it’s been a tough quarter and things are a little bit tight. The reality is, you haven’t set the money aside for your quarterly bills. It happens to the best of us, but there is a solution.
VAT and Corporate Tax Loans are there to help you avoid late payment fines and stay on track.
Managing the cost of VAT Loans and Corporation Tax
Stock purchases, seasonal turnover, unpaid invoices – these can all leave you struggling when your VAT bill is due. Perhaps you do have enough money in your account, but handing it all over in one go to pay a tax bill could leave your business vulnerable in the future.
One stark word of warning: If debts do pile up, payments due to HMRC should always be a priority. Failing to pay the VAT you owe on time could land you with surcharges and penalties running into hundreds of pounds; and the longer you leave it, the more these will escalate. The rate increases each time you default again during a surcharge period.
Fortunately there’s a perfect solution to this taxing issue
More and more businesses are turning to VAT Funding which enables you to spread the cost of your quarterly return by dividing it into three manageable payments. HMRC gets the whole amount upfront, then you only have to draw a third of the money from your account each month to repay the funder.
Rates start from 4.9% of each quarterly VAT bill.
The benefits of VAT funding in a nutshell:
- It’s quick and simple to arrange.
- The rates are competitive.
- It takes pressure off your cash reserves.
- You can retain working capital to spend in other business areas.
- Fixed monthly repayments ease cashflow peaks and troughs.
- You are not tied into a long-term contract.