What is VAT and Corporation Tax funding?

VAT or corporation tax funding involves acquiring a loan against a business's outstanding tax liabilities, with the amount paid directly from the funder to HMRC. This financing option allows for the spreading of payments over a period of time, typically three months for VAT and options of three, six, or twelve months for corporation tax.

Why Use VAT or Corporation Tax Funding?

Businesses choose VAT or corporation tax funding to ease financial pressure and manage cash flow better. By using this option, they can use their money for essential business needs and growth.

Importance of VAT and Corporation Tax Funding in Dealing with Tax Payment Issues

Many small businesses struggle to meet tax deadlines. About one in eight admit to missing deadlines in the past year. Corporation tax is especially tough, with over half of businesses facing problems paying it. Additionally, 35% have difficulties with VAT payments.

Using VAT or corporation tax funding helps businesses avoid missing deadlines and penalties. It ensures they can meet tax obligations while keeping their finances stable and their operations running smoothly.