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.
- Confidential, no-obligation discussion
- Whole of market access
- We are a broker, not a lender
“A very quick and efficient service from Simon.”
Who this is for
Every profession. Especially relevant to law firms and accountancy practices with long lock-up, and to partnerships and LLPs.
- 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
Can a professional practice get a loan to pay its tax bill?
Yes. Tax funding pays HMRC on time and spreads the bill over monthly payments. Professional practices use it for corporation tax, VAT, partners’ self-assessment and PAYE peaks, particularly when cash is tied up in WIP or unpaid bills. We search the market for tax funding that fits the size and timing of the liability.
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.
None of these bills is a surprise. The difficulty is that tax is calculated on profit and invoices, while cash arrives on the client’s timetable. Our guide to funding corporation tax, VAT and partners’ tax compares funding with HMRC payment plans.
Accountancy firms face their own tax bills in the same weeks as their clients’ deadlines. Our page on accountancy practice loans explains how practices fund tax alongside acquisitions, partner buy-ins and seasonal working capital.
What can be funded
What it can cover.
“Getting a business loan can feel like a bit of a minefield, but everything was broken down for me in great detail.”
- 01 Quarterly VAT returns
- 02 Corporation tax
- 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.
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 tax bill or return, the amount and the due date
- Recent accounts and management figures
- Confirmation that tax affairs are up to date
- Any existing tax funding and how it was repaid
- For partners’ tax, how it is paid through the firm
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, VAT and partners’ tax?
Yes. See corporation tax funding for company tax bills and VAT funding for quarterly returns. This page covers the wider picture, including PAYE peaks, and partners’ tax funding covers January and July self-assessment in detail.
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.
Funding Your PII Renewal: Professional Indemnity Premium Finance Explained
How premium finance spreads the cost of professional indemnity insurance, what to check before signing, the regulatory context for solicitors, and the alternatives.
Read the guide →Funding Corporation Tax, VAT and Partners’ Tax: Loans or HMRC Payment Plans?
Why profitable practices still feel the squeeze at tax time, and how tax funding loans compare with an HMRC payment plan for corporation tax, VAT and partners’ self assessment.
Read the guide →Business Finance and Consumer Credit: When the Rules Apply to Your Practice
Who counts as an individual under consumer credit law, how the business purposes exemption works, and what it means for barristers, small partnerships and partners borrowing personally.
Read the guide →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.
Related
- 01Corporation Tax FundingSpread the corporation tax bill while profit is still in WIP and debtors.→
- 02VAT FundingPay the VAT quarter before clients have paid the bills.→
- 03Partners’ Tax FundingFund the January and July self-assessment payments, every year.→
- 04Professional Indemnity FinanceSpread a major annual premium rather than absorbing it at once.→
