VAT finance or HMRC Time to Pay?

If your business cannot pay its VAT liability when it falls due, there may be more than one option available.

VAT finance

External business finance. HMRC receives the VAT payment and your business repays the lender on an agreed schedule. Finance costs apply and approval is subject to credit assessment.

HMRC Time to Pay

An arrangement made directly with HMRC. Availability and terms are decided by HMRC based on your circumstances, and interest may apply. Businesses should contact HMRC as early as possible.

Neither option is automatically better. Consider your circumstances and take advice where appropriate.