Tax Funding allows UK businesses to spread the cost of tax liabilities over manageable monthly repayments, rather than paying a large lump sum in one go. It’s commonly used to fund Corporation Tax, VAT, Self-Assessment, PAYE, and other HMRC liabilities, helping protect cash flow and avoid unnecessary strain on working capital.
Instead of using reserves or overdrafts to meet tax deadlines, a specialist lender pays HMRC on your behalf, and you repay the funding over an agreed term. As independent UK commercial finance brokers, we source competitive Tax Funding solutions from a panel of specialist lenders and structure facilities to suit your cash flow and payment schedule.
Key Benefits of Tax Funding
Protects Cash Flow
Avoids large one-off tax payments that can disrupt day-to-day operations.
Spreads the Cost of Tax Bills
Repay over fixed monthly installment rather than in a single payment.
Supports HMRC Deadlines
Ensures taxes are paid on time, helping avoid penalties and interest.
Flexible Use Across Tax Types
Suitable for Corporation Tax, VAT, Self-Assessment, PAYE, and more.
Predictable Repayments
Fixed terms and clear repayment schedules aid budgeting and planning.
No Need to Use Overdrafts or Reserves
Keeps existing banking facilities free for trading needs.
Fast & Straightforward Process
Often quicker and simpler than negotiating Time to Pay arrangements.
Broker Access to Specialist Lenders
We compare multiple providers to secure the most appropriate and cost-effective solution.