How To Find VAT And Tax Loans


Her Majesty’s Revenue and Customs (HMRC) don’t usually call you up to thoughtfully check your cash flow position before telling you that it’s time to pay your bills!

What that means is that sometimes you may find yourself facing some substantial demands for near immediate payment when you simply do not have the wherewithal to pay.

At ACF Direct, we understand this scenario only too well, having seen it many times with our clients. We, therefore, offer some of the following thoughts that may assist.

Don’t ignore the demand and due date!

Whatever might have been the case 10, 20 or 30 years ago, today HMRC’s collection systems are efficient and they’re managed with “enthusiasm”. You can be absolutely certain that they won’t forget about the bill or automatically take a lenient position in the event you pay late.

You do have options open to you but you should not consider one of them to be “do nothing”.

Plan ahead

The vast majority of tax dates are predictable and should therefore not come as a surprise. True, the actual amount you will need to pay may vary depending upon your accounting position at a given time.

Even so, it would be prudent to work with an accountant in order to forecast the amounts you will roughly need to pay and exactly when. That may help you to provide/save capital to meet those bills when they arrive and above all, it’ll avoid you simply overlooking them until the day they arrive.

Incline towards paying

HMRC do have procedures you can consider in the occasional situations where an exceptional set of circumstances mean you are seeking an extension of the deadline.

Although it is difficult to generalise, as much will depend upon the inclinations of an individual office and the specific situation, typically, the deferred payments approach is something that should be entered into with caution and strictly only if required. That’s because inevitably it may be a position you can adopt only once or twice before you start getting turned down.

So, it might be advantageous to save such formal procedures for a very rainy day when you might need them.

Consider tax finance

In appropriate situations, it may be possible to borrow money to meet your outstanding tax bills through VAT and tax loans.

This is a long-established service that might make a considerable degree of difference between simply settling your outstanding tax bills and becoming embroiled in lengthy deferral or even legal recovery proceedings.

The amounts available and the conditions may vary, depending upon the exact type of tax bill and your exact company situation. As a very general guide, you may be eligible for this type of VAT and tax loans assistance in circumstances where:

  • your business finances are essentially healthy and indicate that your on-going operational viability is not a concern;
  • the financial challenge has arisen for understandable operational reasons. That might include things such as you suffering from a short-term cash flow problem due to unpaid customer invoices or you having recently incurred an entirely unexpected one-off large capital cost which you have been forced to pay immediately;
  • you’re able to show evidence of the sums being demanded by HMRC.

We would welcome the opportunity to explain more of our services in this area to you.