Spread out your VAT tax bill

VAT finance is a facility designed to smoothen out the quarterly peaks in cash flow caused by VAT liabilities.

A lender advances the VAT amount due and either pays HMRC directly or gives the business the funds to do so. The business then repays the lender in monthly instalments, typically over 3–12 months.

Some lenders offer a revolving facility that aligns with VAT cycles. This prevents VAT deadlines from draining working capital all at once.

Benefits

• Smooths out large quarterly VAT outflows.
• Improves cash flow predictability.
• Can protect against late payment penalties from HMRC.

For further information and advice, please contact us today.