The end of the financial year can be a stressful time for business owners. Not only do the annual accounts need filing, but it’s also when HMRC reminds most companies of their tax deadlines. While VAT typically needs paying every quarter, corporation tax is normally due nine months and one day after the end of a company’s accounting period.
Although most business owners will plan in advance for their tax bills, they won’t always have enough working capital to pay them off when the time comes. However, with HMRC imposing late payment penalties on companies that are overdue with their VAT or corporation tax payments, small businesses can’t afford to miss those all-important deadlines.
Funding for tax bills
The size of VAT and corporation tax bills varies by company, but they’re rarely small. Even if a business has the money available, settling them with a single payment could put it in a precarious cash flow position. That’s why many businesses decide to borrow the necessary funds, allowing them to pay their bills on time while spreading the cost over a number of months.
There are plenty of lenders that will happily support a company with its tax payments, but they may be reluctant to lend if a tax bill is already overdue. By applying for a loan or overdraft facility well in advance of your due date, there’ll be less risk of missing your payment and being penalised by HMRC – and the situation will only escalate the longer you’re overdue.
VAT finance from Fleximize
Fleximize has assisted several companies with its tax payments, including businesses in the retail, hotel, construction and brewing industries. Our business loans come packed with flexible features and can typically be deposited in as little as two working days. Here’s the lowdown:
- Borrow anything from £5,000 to £500,000
- Approval and funding in as little as 48 hours
- Quick and easy application with minimal paperwork
- Repay over a flexible term of 1 – 48 months
- Penalty-free early repayments
- Interest charged on a reducing balance, not the total loan amount
- Exclusive offers on industry-leading business services
We know life can be difficult for small businesses and that every company is different. Rather than basing our decisions on a ‘computer says no’ algorithm, we take the unique circumstances of each business into account, with a view to creating a funding package that suits its needs.
VAT on commercial property
The sale or lease of commercial property is generally exempt from VAT, but there are a limited number of circumstances where VAT may be charged. For example, VAT at the standard rate (currently 20%) is applied to transactions where the commercial property involved is less than three years old. A vendor or landlord can also elect to charge VAT if the property has been renovated or refurbished, and they are a looking to recover the associated VAT costs.
If a business is leasing or purchasing commercial property where VAT applies, it may need a loan to cover the cost until it can reclaim the VAT. This is something that Fleximize can assist with, provided a company has been trading for a minimum of six months.
Apply for VAT finance
Ready to apply? All you need to do is click the big yellow button below and fill out our simple application form. If you pass our basic checks, someone will be in touch before you know it to take you through the final stages.
What’s that? You’re not ready to apply?! That’s okay – we forgive you. Feel free to check out our FAQs page or drop us a line on 020 7100 0110. We’ll happily answer any of your burning questions.