Tax & VAT Funding
Spread a corporation tax or VAT bill over months rather than paying it in one movement — without going into arrears with HMRC.
- Whole-of-market — 60+ lenders searched
- All credit histories considered
- Decisions in as little as 24 hours
Whole-of-market — 60+ lenders searched, including
A tax bill arrives on a date HMRC chooses, not one that suits your cash flow. Tax funding spreads a corporation tax or VAT liability over an agreed period so the payment leaves your account gradually rather than all at once. It is short-term, unsecured lending arranged specifically against a known liability.
What you can fund
Corporation tax
Spread a CT600 liability over 3-12 months.
Quarterly VAT
Fund a VAT bill before the customer pays you.
PAYE & NIC
Payroll liabilities smoothed across the period.
Self assessment
Partnership and personal liabilities.
Cash flow gaps
Payroll and supplier timing mismatches.
Working capital
Short-term facilities for a specific need.
What is tax funding?
Tax funding is where a lender pays your tax liability and you repay over an agreed term, typically three to twelve months. HMRC is paid on time, so you stay compliant. It is a cash flow tool, not a substitute for profitability.
A lender pays your tax liability, or advances you the amount, and you repay over an agreed term — typically three to twelve months. HMRC is paid on time and in full, so you stay compliant, and the cost is spread across the months rather than landing in one.
It is not a substitute for profitability. It is a cash flow tool for a business that can afford the tax but cannot afford it on the day it falls due.
Is HMRC Time to Pay cheaper than a tax loan?
HMRC offers Time to Pay arrangements that let you spread a bill in instalments with no arrangement fee, so if you qualify it is usually the cheaper option. A tax loan suits cases where Time to Pay is refused or too short.
We should say this plainly. HMRC offers Time to Pay arrangements that let you spread a bill in instalments, and there is no arrangement fee. If you qualify and it works for you, that is usually the cheaper option and you should take it.
A tax loan makes sense when Time to Pay is refused, when the period offered is too short, when you would rather not have an arrangement on your record, or when you need certainty rather than a negotiation. Those are real situations — but anyone who sells you a tax loan without mentioning Time to Pay is not being straight with you.
When is corporation tax due?
The two most commonly funded liabilities. Corporation tax falls nine months and a day after your year end, often long after the profit was earned and spent. VAT is quarterly and relentless, and a single large invoice can create a liability before the customer has paid you.
What can cash flow and working capital funding be used for?
The same short-term facilities cover wider working capital needs — a payroll gap on a long contract, a supplier who wants payment before your customer pays you, or a seasonal trough. Cash flow finance is priced on the strength of the business rather than on an asset, so it is assessed differently from the asset finance we usually arrange.
Where to go next
- Corporation tax loan — spreading a CT600 liability.
- VAT loan — funding a quarterly VAT bill.
- HMRC Time to Pay explained — how the free option works first.
- Cash flow and working capital funding — beyond tax.
Why is tax funding more expensive than asset finance?
Short-term unsecured lending is more expensive than asset finance because there is no asset securing it. What it buys is timing. CW Asset Finance will tell you the total cost before you commit, not just the monthly figure.
Short-term unsecured lending is more expensive than asset finance, because there is no asset securing it. Anyone telling you otherwise is selling. What it buys is timing — and for a business with a tax bill due and a customer paying in sixty days, timing is often worth the cost. We will tell you the total cost before you commit, not the monthly figure.
How it works
Tell us what you need
One quick conversation about the asset and how the repayments need to work.
We search 60+ lenders
As an independent broker we find the right structure and rate — not one lender’s products.
You get funded
Indicative decisions in as little as 24 hours, then we manage it through to payout.
Estimate your repayments
Asset finance is quoted on a flat rate, so that is what the buttons show, with the equivalent APR beside it. Your exact rate depends on the asset, the term, the deposit and the lender.
Prime is an established, profitable business with clean credit. Specialist covers newer businesses and credit that needs explaining — the asset itself carries part of the risk, which is why finance is often available where an unsecured loan is not.
Representative example: on Hire Purchase, borrowing £25,000 over 48 months at a 5.15% flat rate (equivalent to 9.9% APR representative), you would repay around £628 a month; total amount repayable approximately £30,150, of which £5,150 is the cost of finance. This calculator is for illustration only — it is not a quote or an offer of finance, and the rate and repayments you are offered will depend on the asset, term, deposit and your circumstances. CW Asset Finance is a credit broker, not a lender, and will receive a commission from the lender that funds your agreement. All finance is subject to status, affordability and lender approval.
Rates shown are indicative flat rates with the equivalent APR alongside — the two are not the same number. Indicative only and does not constitute a quote or an offer of finance. Subject to status and lender approval.
Frequently asked questions
What is a tax loan?
Should I use HMRC Time to Pay instead?
Is tax funding secured on my assets?
How quickly can it be arranged?
Will it affect my credit file?
Do you cover my area?
Get your quote
Tell us what you’re looking to fund and Conor will come back to you personally — usually the same day.
Prefer to talk? Call 0333 772 4864 · serving Leeds, York, Harrogate, Wakefield, Selby, Tadcaster & across North & West Yorkshire.