Bridging Loan To Pay HMRC Tax Bill
Although January and April are prime tax months, you might face an unexpected tax bill at practically any other time of year. Smart companies throughout the UK are increasingly resorting to inexpensive loans to pay their tax payments, frequently saving considerable sums of money in the process.
A common concern among business owners
Far from being a rarity, thousands of business owners each year find themselves facing the exact same scenario. Usually, at the worst possible moment, you discover a significant tax payment is due, only to then find you don’t really have enough working capital to cover it.
As a result, you face the prospect of painful penalties and excessive additional charges, along with the unwanted attention of HMRC.
It may seem like an inevitable eventuality, but there are in fact plenty of alternative options for funding an unexpected tax bill. No matter how urgent or extensive your requirements may be, contact the team at UK Bridging Loans to discuss available options.
Pay: don’t delay
The longer you delay paying your taxes, the greater the risk you take on. HMRC has ramped up its battle against firms that fail to fulfil their tax responsibilities in recent months and years, with an alarming campaign of liquidation and winding-up orders.
This is where flexible and affordable tax bill loans can help. By taking out a specialist business loan to pay tax bills in full and on time, you protect your business from a variety of potential risks. In addition, you could also find that the interest charges and borrowing costs are significantly lower than the penalties that would apply in the case of non-payment.
The vast majority of unexpected tax bills can be covered by a variety of flexible and affordable loans. At UK Bridging Loans, our experience and expertise extends to all types of secure loans and personal loans to pay tax bills for businesses and entrepreneurs.
VAT loans
Another popular type of loan for tax bill payments is the specialist VAT loan. Particularly where major purchases and investments are concerned, you may find yourself and/or your business liable for an enormous additional VAT payment. You will be able to reclaim this VAT at a later date, but you could nonetheless face several weeks or months of cash flow issues.
VAT loans are designed to bridge these gaps with purpose-made, ultra-short-term loans at rock-bottom rates of interest. The loan will be issued within a matter of days to cover the VAT payment. Your business benefits from smooth and adequate cash flow, and the loan balance is repaid when you receive your VAT refund.
Our VAT loans are particularly popular among property developers and investors, though they are also open to all types of businesses and entrepreneurs.
Call for a quote
No matter how complex or urgent your requirements may be, you will not find a more capable or experienced broker than UK Bridging Loans.
Call anytime to discuss our fast bridging loans to pay HMRC tax bills in more detail, or email us and we will get back to you as soon as possible.
Uk’s Best bridging loan rates from 0.55%
How it works
Get in touch
Clients approach UK Bridging Loans either directly or via introducers. Basic questions by way of a “fact-finding” process are used by UK Bridging Loans to determine if the lending requirements are a possibility.
Fast approval
An immediate yes or no answer is given, and if suitable, a quotation is formulated and forwarded to the client, usually by email.
Formal offer
A formal offer is produced for any client wishing to proceed and forwarded for signature, again, usually by email.
Representative visit
Each client is visited at the security address for the signature of the remaining loan paperwork, including a CH1 land registry charging order. We will also collect any additional pre-requested documentation.
Dedicated underwriting
The signed documentation was immediately sent to our underwriters. Our model is based on very quick completions, as each deal is funded using all of our own money. On rare occasions, we may request additional information.
Payment of funds
Average completion from initial acceptance to pay-out is usually just a few days. We rarely require valuations or additional legal representation. The land registry charge will be removed once the bridging loan is repaid.
Who can use bridging finance?
Age
The applicant could be too old to obtain a standard high-street mortgage, as most mortgage lenders now prevent borrowing beyond what is deemed “normal retirement age”.
Property conditions
The property may be in a condition where it is not suitable for mortgage financing, and as such, a bridging loan could be used to complete the purchase and any required work prior to refinancing.
Credit
The applicant may have had some adverse credit, however minor, which was previously acceptable to lenders but now no longer fits the high street lending criteria.
Income
The applicant may have difficulty proving the income requirements needed for more regular financing. This may be due to poor self-employment records, a break from work, a reduction in self-employed workloads, or overtime.
USP’s
Superfast completion, often within days
Quick auction finance
2nd charge behind the bridging lender
Pure equity-based lending
Loans from £25,500
Land, with or without planning
3rd charge (consent is not always required)
2nd charge behind the equity release lender
Residential and commercial
A free legal option
2nd charge (consent is not always required)
Adverse credit is considered
Up to age 85
Valuations are not always required
No monthly payments
Frequently asked questions
Can you get a loan to pay a tax bill?
Yes, it is possible to get a loan to pay a tax bill. There are a number of different types of loans available, including personal loans, bridging loans, and specialist tax loans. However, it is important to note that borrowing money to pay your tax bill is not always the best option. There are other alternatives, such as negotiating an installment plan with HM Revenue and Customs (HMRC), that may be more affordable in the long run.
Is bridging loan tax deductible?
Bridging loans are not tax-deductible in the UK. However, the interest you pay on a bridging loan may be tax deductible if you use the loan to invest in a business or property.
How do I qualify for a secured business loan?
To qualify for a secured business loan, you will typically need to meet the following criteria:
Can I borrow money to pay inheritance tax?
In some cases, you may be able to borrow money to pay inheritance tax. This is known as a “loan to value” (LTV) mortgage. However, LTV mortgages are typically only available to homeowners who have a substantial amount of equity in their property.
It is important to carefully consider your options before taking out a loan to pay a tax bill. You should talk to a financial advisor to get advice on the best type of loan for your individual circumstances.
Bridging loan uses
Opening Hours
Mon-Thurs: 9am-8.30pm
Fri: 9am-5pm
Sat: 10am-5pm
Sun: 11am-5pm
Open 7 Days a Week
