VAT and tax loans
Pay HMRC on time without draining your cash flow.
A VAT or tax loan pays your bill to HMRC on time, then you repay in instalments over a few months, keeping cash in the business when you need it most.
- Borrow
- Your bill
- up to about £500k
- Repay over
- 3–12 months
- Repayments
- Fixed
- Cost to check
- £0
Ranges reflect lenders on our panel. What you’re offered, and the cost, depends on your business and the lender.
Good for
- Quarterly VAT bills that land at an awkward time
- Corporation tax payments after a strong year
- Avoiding HMRC late-payment penalties and interest
- Keeping working capital free for stock, wages and growth
How it works
- 1
Tell us the bill
Share the amount and when it’s due, with a little about the business.
- 2
We find a lender
Your adviser looks for lenders on our panel that fund tax bills on suitable terms.
- 3
HMRC gets paid
Funds are released so you can pay on time.
- 4
Repay in instalments
Spread the cost over a short, fixed term.
Costs and trade-offs
What it costs, honestly.
How it’s priced
A VAT loan is a short-term business loan, so you’ll pay interest and sometimes a fee. Before you borrow, it’s worth asking HMRC about a Time to Pay arrangement, which can cost less. Your adviser will talk you through both honestly.
Check the true cost of a quoteWhy people choose it
- Pay HMRC on time and avoid penalties
- Keeps cash available for running the business
- A short, fixed repayment period
Worth knowing
- Borrowing costs money; HMRC’s Time to Pay may be cheaper
- Repeated tax loans can signal a cash flow problem worth addressing
- Most lenders ask for a personal guarantee
What lenders usually look for
Every lender is different. If you don’t tick every box, talk to us anyway: part of our job is knowing who might say yes.
- VAT registration and filed returns, for VAT funding
- Trading for at least 6 to 12 months
- Regular income through a business bank account
- A director’s personal guarantee, for most lenders
Should I use a VAT loan or HMRC Time to Pay?
If HMRC will agree a Time to Pay arrangement, it’s often the cheaper option. A VAT loan can make sense if you’d rather keep your account with HMRC clear, need certainty, or HMRC won’t agree terms. We’ll help you weigh it up.
What happens if I pay VAT late?
HMRC can charge penalties and interest on late payments. Paying on time, even with borrowed money, avoids those and keeps your record clean.
Other routes
You might also consider
- Short-term loansA short-term loan is repaid over months rather than years. It suits a specific need with a clear end, such as stock for a busy season or a gap before a contract pays.
- Business loansBorrow a lump sum and repay it in fixed instalments. An adviser looks across our panel, explains what each offer really costs and helps you choose with confidence.
- Revolving creditA revolving credit facility gives your business a set limit. Draw what you need, repay it, and the funds are there again next time.
Your next move starts with a clearer view.
Tell us what you need. We'll show you the routes that fit your business and help you take the next step.