Firstly – don’t panic! Many businesses find themselves struggling with tax bills so you’re not alone if you’re in this position.
With HMRC really cracking down on late payments and issuing fines and penalties, the bill should be paid as soon as possible. If you don’t, the ramifications for delaying can be much worse than a fine if you don’t have an arrangement with HMRC like a Time To Pay.
Some bills you must pay include PAYE tax, corporation tax, quarterly VAT, quarterly rent and any unforeseen expenses, and they can quickly mount up.
What can you do?
There are funders in the market who offer unsecured loans specifically for paying a VAT or tax bill. Many businesses are now realising that an unsecured business loan can be used for much more than short-term cash flow solutions.
They’re available and suitable for companies with a proven trading history and a minimum turnover of £75,000.
Read more about how unsecured loans can be used to finance your tax and VAT bills.
Pay first, peace of mind later
As we’ve mentioned, do your best to pay HMRC what you owe. If you do pay your bill immediately and then realise that you’ve depleted your working capital and your business will struggle to get by, you can get a retrospective tax loan. This will release more cash flow and let you get on with business as usual without more worries about your tax and VAT bills.
Improve cash flow with invoice finance
You could also look at using invoice factoring to improve overall cash flow. If you prefer confidentiality, invoice discounting is also an option.
Get in touch
Have a chat with us about how to go about financing your tax bill with an unsecured business loan. Fill out our form below to arrange a confidential, no-obligation conversation with one of our consultants, or give us a call on 0207 0019142.