VAT finance for UK businesses
Your VAT bill.
Spread the cost, not your cash flow.
Finance an upcoming VAT payment over an agreed period and keep more working capital available for your business.
- — Business finance only
- — Subject to status and lender approval
See what your VAT finance could look like
How much would you like to finance?
Term
Estimated monthly repayment
£8,708.33
- Amount financed
- £25,000.00
- Finance cost
- £1,125.00
- Total repayable
- £26,125.00
- Term
- 3 months
This is an indicative illustration, not a finance offer. Pricing and availability are subject to status, lender assessment and final approval.
A VAT payment shouldn't have to stop you using cash elsewhere in the business.
Quarterly VAT payments can create a substantial short-term call on cash.
Rather than removing the full liability from the business at once, VAT finance can allow an eligible company to spread the payment over an agreed term.
Your VAT bill
£30,000
Pay it yourself
£30,000 leaves the business now.
VAT finance
£30,000 paid towards the VAT liability. The business repays the finance over the agreed term.
Finance involves an additional cost. Figures are illustrative.
How VAT finance works
- 01
Tell us what you need to pay
Enter your VAT liability and see an indicative repayment.
- 02
Apply
Give us some basic information about your business.
- 03
We assess the application
Your enquiry is reviewed and, where appropriate, submitted to a finance provider.
- 04
Your VAT liability is funded
Following approval and completion, funds can be used to settle the VAT payment.
- 05
Repay over the agreed term
Your business makes the agreed repayments.
Why use VAT finance?
1
Keep working capital available
Avoid taking a significant amount of cash out of the business in one transaction.
2
Plan repayments
Turn a large VAT liability into scheduled business finance repayments.
3
Finance what you need
Depending on the facility, businesses may be able to finance the whole VAT liability or only part of it.
Finance the gap, not necessarily the whole bill.
Pay what you're comfortable with from cash and see what's left to fund.
Funding required
£20,000
Who is VAT finance for?
VAT finance may be suitable for established UK businesses that have a VAT liability but would prefer to retain working capital for other business costs.
All applications are subject to lender assessment.
- Construction
- Engineering
- Manufacturing
- Recruitment
- Technology
- Professional Services
- Accountancy
- Legal
- Architecture
- Transport
- Retail
- Hospitality
Comparison
VAT finance or HMRC Time to Pay?
If your business cannot pay its VAT liability when it falls due, there may be more than one option available.
VAT finance
- External business finance
- HMRC receives the VAT payment
- Agreed repayment schedule
- Finance costs apply
- Subject to credit approval
HMRC Time to Pay
- Arrangement directly with HMRC
- Availability decided by HMRC
- Terms depend on the circumstances
- Interest may apply
- Businesses should contact HMRC as early as possible
When is your VAT payment due?
Your standard VAT payment deadline
—
Questions
What is VAT finance?+
VAT finance is a form of short-term business finance used to fund a VAT liability. The business repays the finance, plus any agreed costs, over a set term.
How does VAT finance work?+
You tell us the VAT amount you need to fund. If your application is approved, the funds are used towards your VAT payment and your business repays the lender in instalments over the agreed term.
How much can I borrow?+
This depends on the size of your VAT liability, your business's financial position and the lender's criteria. Use the calculator for an indicative illustration.
How much does VAT finance cost?+
Costs depend on the amount, term and lender assessment. The calculator shows an indicative transaction fee based on current illustrative pricing. Your actual cost will be confirmed in any finance offer.
Can I finance part of my VAT bill?+
Yes, depending on the facility. Many businesses pay part of the liability from cash and finance the remainder.
Can the VAT payment be made directly to HMRC?+
With some facilities the funds are paid directly to HMRC on your behalf. Arrangements vary by lender and will be confirmed before completion.
How quickly can VAT finance be arranged?+
Timescales depend on the information provided and the lender's assessment. Applying well before your VAT deadline gives the most options.
Can I apply if my VAT payment is already overdue?+
You can still make an enquiry. Overdue liabilities may affect what is available, and you should also contact HMRC as early as possible.
Does the calculator affect my credit score?+
No. Using the calculator does not involve any credit search. A lender may carry out checks if you proceed with an application.
What information will I need?+
Typically your company details, the VAT liability and due date, and recent financial information such as accounts or bank statements. We'll confirm what's needed.
What is HMRC Time to Pay?+
Time to Pay is an arrangement agreed directly with HMRC to pay a tax debt in instalments. Availability and terms are decided by HMRC and interest may apply.
Can VAT finance help my cash flow?+
It can allow you to spread the cost of a VAT payment rather than paying it from cash in one go. Finance involves an additional cost, so consider whether it suits your business.
Know what your next VAT bill will be?
See an indicative repayment in seconds.
Business finance only. Subject to status and lender approval.