Corporation Tax Funding & Loans for Professional Practices
Profit on paper.
Tax due in cash.
Corporation tax is charged on profit, not cash. For a practice with fees tied up in WIP and unpaid bills, one payment to HMRC can arrive when the bank balance least supports it.
- Confidential, no-obligation discussion
- Whole of market access
- We are a broker, not a lender
“It allowed me to concentrate on my business while they found me the most competitive business loan.”
Who this is for
Practices that trade as limited companies, including law firms, accountancy practices, dental and veterinary companies, architects and consultancies.
- Lender searchWhole of marketNot tied to any one lender
- Instant QuotesNo credit searchSee indicative quotes first
- Who we helpProfessional practicesSole traders, partnerships, LLPs and companies
- Our roleSpecialist brokerWe approach suitable lenders for you
Quick answer
How does corporation tax funding work?
Yes. A corporation tax loan pays HMRC on or before the due date and is repaid in monthly instalments. It suits practices whose profit is still tied up in work in progress and unpaid bills when the tax falls due. Corporation tax applies to companies, not partnerships or LLPs. We search the market for the right option.
The pressure
Profit on paper.
For most companies, corporation tax is due in one payment 9 months and 1 day after the end of the accounting period, while larger companies pay in instalments. Either way, the bill reflects profit already earned, and in a professional practice much of that profit may still be in work in progress, unpaid fees or client disbursements.
Paying it from the office account can leave the practice short for salaries, the PII renewal or directors’ drawings in the months that follow.
What can be funded
What it can cover.
“A very quick and efficient service from Simon.”
- 01 Corporation tax on the latest accounts
- 02 Instalment payments for larger companies
- 03 Corporation tax falling alongside a VAT quarter or PAYE peak
How it’s often structured
Structured around the practice.
Corporation tax funding usually pays HMRC directly, on or before the due date, and is repaid in monthly instalments over a short term. It is designed for current or upcoming bills rather than arrears that are already overdue.
How we help
Not one lender. The right one.
Corporation tax funding is offered by specialist tax lenders, premium funders and general business lenders, with very different costs and terms. We look at the size and timing of the bill and how your practice earns, then search the market for the option that fits.
Want a feel for the numbers first? Try our tax bill funding calculator.
- Whole of market accessHigh street banks, specialist and private lenders.
- Specialist understandingLenders who understand how practices earn and grow.
- Your case, properly presentedStructured and put to lenders suited to it.
- With you to completionFrom the first conversation to funds arriving.
What lenders will want to see
What lenders will look at.
- The corporation tax computation or the amount due and its deadline
- The company’s latest accounts and management figures
- Confirmation that filings and payments are up to date
- Existing borrowing and any previous tax funding
See our guide to funding corporation tax and VAT for how this compares with an HMRC payment plan.
Who this is for
Practices that trade as limited companies, including law firms, accountancy practices, dental and veterinary companies, architects and consultancies.
Questions
What firms usually ask.
Can I get a loan to pay corporation tax?
Often, yes. A corporation tax loan pays HMRC on or before the due date and is repaid in monthly instalments over a short term. For most companies the bill is due 9 months and 1 day after the end of the accounting period, so there is time to arrange funding if you start early. We search the market for the option that fits the size and timing of the bill.
Why do profitable practices struggle to pay corporation tax?
Corporation tax is charged on profit, not cash. A law firm or accountancy practice can show a healthy profit while much of it is still tied up in work in progress and unpaid bills. Funding the bill lets the practice pay on time without cutting into the cash it needs for salaries and overheads.
We’re already behind with corporation tax. Can funding help?
Corporation tax funding is designed for bills that are current or coming up. If a payment is already overdue, talk to HMRC about a Time to Pay arrangement and to your accountant, and tell us at the outset, because the options are different.
Can corporation tax and VAT be funded together?
Often, yes, depending on timing and the lender. Where a corporation tax bill lands in the same month as a VAT quarter, one arrangement can sometimes cover both. See VAT funding for how the VAT side usually works.
Does corporation tax funding apply to LLPs and partnerships?
No. LLPs and partnerships don’t pay corporation tax; their members and partners pay tax through self-assessment instead. That is covered by tax funding for partners, and borrowing by an individual can sometimes be regulated consumer credit.
In our clients’ words
“I contacted them to apply for a VAT funding loan. Simon responded within half an hour of my request and was able to confirm funding within a 24 hour period. It was the first time I have had to apply for funding owing to a short-term cash flow problem, and he made the journey so easy. Kind and highly efficient: I would highly recommend them for a fast, professional service.”
Knowledge Hub
Read the guides.
Let's talk
Corporation tax bill coming up?
Talk to us before it lands.
Before you approach a lender, speak to someone who understands the transaction. Confidential, no-obligation initial discussion.
