VAT finance questions

VAT finance is a form of short-term business finance used to fund a VAT liability. The business repays the finance, plus any agreed costs, over a set term.

You tell us the VAT amount you need to fund. If your application is approved, the funds are used towards your VAT payment and your business repays the lender in instalments over the agreed term.

This depends on the size of your VAT liability, your business's financial position and the lender's criteria. Use the calculator for an indicative illustration.

Costs depend on the amount, term and lender assessment. The calculator shows an indicative transaction fee based on current illustrative pricing. Your actual cost will be confirmed in any finance offer.

Yes, depending on the facility. Many businesses pay part of the liability from cash and finance the remainder.

With some facilities the funds are paid directly to HMRC on your behalf. Arrangements vary by lender and will be confirmed before completion.

Timescales depend on the information provided and the lender's assessment. Applying well before your VAT deadline gives the most options.

You can still make an enquiry. Overdue liabilities may affect what is available, and you should also contact HMRC as early as possible.

No. Using the calculator does not involve any credit search. A lender may carry out checks if you proceed with an application.

Typically your company details, the VAT liability and due date, and recent financial information such as accounts or bank statements. We'll confirm what's needed.

Time to Pay is an arrangement agreed directly with HMRC to pay a tax debt in instalments. Availability and terms are decided by HMRC and interest may apply.

It can allow you to spread the cost of a VAT payment rather than paying it from cash in one go. Finance involves an additional cost, so consider whether it suits your business.