VAT & corporation tax loan calculator

Yes. Tax loans work the same way for corporation tax as for VAT: the loan pays HMRC, and the company repays the lender over an agreed term.

Often within days once the lender has your latest accounts, VAT returns and bank statements, but timing depends on the lender. Start well before the deadline.

It can be cheaper, but HMRC decides whether to agree, on what terms, and it charges interest. A loan offers a fixed repayment plan if approved. Your accountant can help you compare.

HMRC may charge late payment interest, currently the Bank of England base rate plus 4%, and late payment penalties that can increase the longer the bill is unpaid. If you cannot pay in full, contact HMRC before the deadline, as it may agree a Time to Pay arrangement. A VAT loan is another way to pay on time.

For most companies, corporation tax is due 9 months and 1 day after the end of the accounting period, while the return is filed later. Large companies usually pay in quarterly instalments instead. Your accountant can confirm your dates, which helps you arrange any tax loan well before the payment deadline.

Tax loans are usually short term, often 3 to 12 months, so the repayments finish before too many further tax bills fall due. Some lenders may offer longer terms for larger amounts, depending on your accounts. A longer term lowers the monthly repayment but adds interest, so test both here.

Not necessarily. Profitable companies can face a large VAT or corporation tax bill at a moment when cash is tied up in stock or unpaid invoices, particularly when they are growing. Lenders do look carefully at whether the company can afford its ongoing tax as well as the loan.