Tax Loans & Tax Funding for Professional Practices
Predictable liabilities.
Unpredictable timing.
Professional firms know the tax bill is coming. The problem is that it often arrives when cash is tied up in WIP, fee collections are slow, or the PII renewal has just gone out.
Who this is for
Every profession. Especially relevant to law firms and accountancy practices with long lock-up, and to partnerships and LLPs.
The pressure
Predictable liabilities.
VAT is charged on fees when invoiced, but clients don’t always pay promptly. Corporation tax falls in one amount. For partnerships and LLPs, partners’ self-assessment payments in January and July can drain the firm through drawings at exactly the moment accountancy practices, in particular, are at their busiest and least liquid.
What can be funded
What it can cover.
- 01 Quarterly VAT returns
- 02 Corporation tax
- 03 Partners’ self-assessment liabilities, where paid via the firm
- 04 PAYE peaks after bonus or profit-share payments
How it’s often structured
Structured around the practice.
Tax funding usually pays HMRC directly and is repaid over a short term, often a few months to a year. It is designed for current or upcoming liabilities, not for clearing arrears that are already overdue.
How we help
Not one lender. The right one.
Tax funding is offered by specialist tax lenders, premium funders and general business lenders, with very different costs and terms. We search the market for the option that fits the size and timing of the bill.
Who this is for
Every profession. Especially relevant to law firms and accountancy practices with long lock-up, and to partnerships and LLPs.
Questions
What firms usually ask.
We’re already behind with HMRC. Can this help?
Tax funding is designed for bills that are current or coming up. If there are existing arrears or a Time to Pay arrangement, talk to us about that separately; the options are different.
Can VAT and corporation tax be funded together?
Often, yes, depending on timing and the lender.
Can partners’ self-assessment tax be funded through the firm?
Often, yes, where partners’ tax is paid via the firm. Self-assessment payments fall on 31 January and 31 July, which can drain the firm through drawings. Borrowing by an individual can sometimes be regulated consumer credit, and we’ll tell you at the outset if that applies.
Do you have separate pages for corporation tax and VAT?
Yes. See corporation tax funding for company tax bills and VAT funding for quarterly returns. This page covers the wider picture, including partners’ self-assessment and PAYE peaks.
Let's talk
Next tax bill on the way?
Talk to us before it lands.
Before you approach a lender, speak to someone who understands the transaction. Confidential, no-obligation initial discussion.
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.