Facing a HMRC Tax bill? Here are some of the finance options open to you!

11 November 2019

It is no secret that having to pay tax is not something that many people want to do, but it is something that we must do, whether we like it or not.

In fact, paying our tax bill is a legal requirement and it can take a huge chunk out of your bank account.

Even the healthiest of businesses can find it hard to pay their tax bill at times.

So, what can they do to help? A loan might be the ideal option to consider. Not only will it ensure that you are on the right side of the HMRC, but it also means that you can focus on running your business without having to worry about your tax bill.

But why might you find yourself having to take on finance for your tax bill?

HMRC can charge you a penalty of up to:

  • 100% of any tax under-stated or over-claimed if you send a return that contains a careless or deliberate inaccuracy.
  • 30% of an assessment if HMRC sends you one that’s too low and you do not tell them it’s wrong within 30 days.
  • £400 if you submit a paper VAT Return, unless HMRC has told you you’re exempt from submitting your return online.

You receive a quarterly VAT bill

It is important that any VAT that you owe to HMRC is paid on time. HMRC will keep in contact with you and chase you if you are late paying your VAT bill, which means that you need to ensure that you deal with this when it arises.

If you need to organise a loan for your VAT bill then it is going to need to be applied for and received as quickly as possible. Which means that you might want to consider a finance option that is designed for exactly this reason.

You need to pay corporation tax

Receiving a huge corporation tax bill has often been the end of a business. So, if you are a limited company then it is a good idea to try and plan for this particular tax bill.

You will pay this tax once you have had a year earning profit and the bill will be paid retrospectively.

This means that you will pay last year’s tax bill the following year.

PAYE

Having employees in your business is great, however, when you have employees you are going to need to make sure that you run your payroll under a PAYE scheme.

Every single year that you are within this scheme you will receive a PAYE bill that will need to be paid.

However, this isn’t the most important part of PAYE that you need to keep in mind. You also need to be mindful that you have wages to pay on a regular basis, and even if your business is not quite making the profit that you have hoped for, you are still going to need to make sure that your employees are paid.

An unexpected bill

In the most part you are going to be able to plan for and save for a tax bill that relates to your business, but sometimes they just come up without you realising.

Rather than having to decide whether you will pay your tax bill or pay your rent, it is always worthwhile looking into whether a loan is the right option for you.

Options for funding

  • VAT Business Loans – spread the cost of your VAT bill over 3 months putting an ease on your cashflow.
  • Tax Bill Business Loans – cover the cost of your tax bills with a short-term business loan. Fast and simple way to spread the cost with the option to pay directly to HMRC. Available even if payment has already been made.

Looking for a VAT loan or Corporation Tax loan?

Contact The Funding Store to discuss how we can source competitive quotes for your business today.

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This article has been produced by The Funding Store for general interest. No responsibility for loss occasioned to any person acting or refraining from action as a result of the information contained in this article is accepted by The Funding Store (MK) Limited. In all cases appropriate professional advice should be sought before making a decision.