Calculator
Tax bill funding
calculator.
Estimate the monthly repayment and total cost of spreading a VAT, corporation tax or self-assessment bill with a short-term loan, and compare it with paying in one go.
How it works
How the figures are worked out.
The calculator treats the tax bill as a short-term repayment loan: the same payment every month, covering interest and part of the capital, so the balance is cleared by the end of the term. The payment uses the usual amortisation formula, with the annual rate divided by twelve.
The extra cost against paying in one go is the total interest plus any arrangement fee you enter. That is the price of keeping the cash in the practice now and paying it out over the term instead. Whether that is worthwhile depends on what the cash is needed for and when the practice’s cash position recovers.
The same calculation works for VAT, corporation tax and partners’ self-assessment bills. It does not include any interest or penalties HMRC may charge if a bill is paid late.
Illustrative only. The figures are estimates based on the numbers you enter, including any rates and fees, which are your own assumptions. They are not a quote, an offer of finance or the rate you would be offered. Lenders decide eligibility, rates and terms.
Professional Practice Loans is a broker, not a lender: we search the market for lenders suited to your practice. Finance of £25,000 or less for sole traders and small partnerships can be regulated consumer credit. We'll tell you at the outset if that applies to your firm.
Questions
About this calculator.
Is a loan the only way to spread a tax bill?
No. Practices can also ask HMRC about a payment plan, often called Time to Pay, where the debt is paid in instalments on terms HMRC agrees. HMRC explains who can apply and how on GOV.UK: if you cannot pay your tax bill on time. Our guide to funding corporation tax and VAT compares the options.
Can the loan be paid straight to HMRC?
Depending on the lender, funds may be paid directly to HMRC or to the practice for onward payment. The balance is then repaid in monthly instalments over a short term.
Why is paying in one go shown as costing nothing extra?
Paying the bill in full on time has no finance cost. The comparison shows what spreading the bill with a loan would add, so you can weigh that against keeping the cash in the practice for other needs.
Let's talk
Want real figures
for your practice?
A calculator can only use the numbers you give it. Tell us what the funding is for and we will search the market for lenders suited to your practice. No obligation.
More calculators
- 01Practice purchase loan calculatorLoan amount, monthly repayment and total cost of buying a practice, with repayments as a share of profit.→
- 02Partner buy-in loan calculatorMonthly repayment and total cost of funding a capital contribution, against your profit share.→
- 03PII premium finance calculatorDeposit, monthly instalment and total cost of spreading a PII premium.→
