Is this only for VAT, or Corporation Tax too?

Both. We arrange funding to cover both VAT bills (including quarterly returns and any HMRC demand following an assessment) and Corporation Tax liabilities — whether that's the January payment on account, the July balancing payment, or a lump sum following a tax year-end assessment. The structure of the funding is broadly similar; the term and timing are aligned to the tax cycle.

Can I use this for any tax bill — including PAYE or NI?

VAT and Corporation Tax are the most commonly funded tax liabilities, and the ones most lenders on our panel specifically cater for. PAYE and employer National Insurance arrears are less commonly available from this type of facility, though some business loan products can be used for any purpose including tax — we will discuss the full picture with you.

Will I still owe HMRC, or does the lender pay them directly?

The lender advances the funds to your business bank account. You remain responsible for paying HMRC directly and on time — the lender is not settling the bill on your behalf. This means you need to ensure the funds reach HMRC before the payment deadline; the advance is a means of having the cash available, not a deferred payment arrangement with HMRC.

Tax Bill Funding

Don't let a tax bill wreck your cashflow

A large VAT or Corporation Tax bill landing at the wrong moment doesn't have to mean draining reserves or delaying growth spending. Sorbus Finance arranges short-term funding to spread the bill into manageable monthly payments — released quickly ahead of your deadline, repaid over the months that follow.

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Key tax deadlines to plan around

7 April

Q1 VAT return due

For quarter ending 28/29 February

7 July

Q2 VAT return due

For quarter ending 31 May

7 October

Q3 VAT return due

For quarter ending 31 August

7 January

Q4 VAT return due + Corporation Tax

Quarter ending 30 November; also peak for CT year-ends

Exact deadlines depend on your VAT quarter and accounting year-end. Contact Sorbus Finance at least two weeks before your payment date for the best range of lender options.

How tax funding works

Spreading the bill, protecting the cashflow

VAT and Corporation Tax funding is a short-term business loan arranged specifically to cover a tax liability. The lender releases funds to your business account — typically within a few working days of application — and you use those funds to pay HMRC by the deadline. You then repay the lender in monthly instalments over an agreed term, typically 3–12 months.

The cost of this arrangement is the interest charged on the facility. For a profitable business with a strong trading record, that cost is typically modest relative to the cashflow benefit of not paying a large lump sum in one hit — and significantly cheaper than the HMRC late payment penalties and interest that accumulate if the bill is missed.

This is not a deferred payment arrangement with HMRC. HMRC offer their own Time to Pay scheme in some circumstances — that is a separate conversation to have with HMRC directly. Tax funding from a lender is a commercial facility that allows you to pay HMRC on time and in full, while managing the cash impact over the months that follow.

At a glance

What can be fundedVAT bills, Corporation Tax liabilities

Typical loan size£5,000 to £500,000+

Typical repayment term3 to 12 months

Time to fundsOften within 2–5 working days of application

Security requiredUsually unsecured for well-established businesses

Minimum trading historyTypically 12 months, some lenders consider less

Who it's for

Businesses that use tax funding

Growing businesses with strong trading but a cash timing mismatch

Profitability and cashflow are different things. A business growing quickly may have most of its working capital tied up in stock, debtors, or expansion spending at precisely the moment a large tax bill falls due. Tax funding bridges the timing gap without disrupting the growth.

Seasonal businesses with lumpy cashflow

A business with strong summer revenue and a January Corporation Tax bill faces a structural mismatch. Tax funding smooths this out — the bill is paid on time, repaid over the months when revenue has recovered.

Businesses facing a larger-than-expected bill

An HMRC enquiry, a correction to a previous return, or a bumper trading year can produce a tax bill larger than the provisions made for it. Tax funding covers the shortfall without requiring the business to liquidate assets or draw on essential reserves.

Businesses wanting to protect working capital

Some businesses could pay the bill from reserves but choose not to — because preserving working capital at a modest interest cost makes more sense than drawing down a buffer built up over years. An adviser can help you work out whether this calculation stacks up.

Enquire about VAT & Corporation Tax Funding

Get your personalised quote

Send us your details and one of our advisers will call you back, usually within one business day. No obligation, no credit check.

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01246 383500

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Our free Finance Health Check gives a snapshot of your business's financial position — useful context for any lending conversation.

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VAT & Corporation Tax funding — your questions answered

Common questions from businesses facing an upcoming tax payment.

For established businesses with clear trading history and the relevant tax assessment or demand available, VAT and Corporation Tax funding can often be arranged within a few working days. The key is calling us as early as possible — the closer you are to the payment deadline, the more lender options narrow and the less time there is to compare properly. If your payment is due within the next week, call us today.

A previous missed tax payment or an existing Time to Pay arrangement with HMRC doesn't automatically prevent funding, but it narrows the lender options and will be taken into account. The key questions are whether HMRC has been engaged (a Time to Pay arrangement in place is treated more positively than an ignored demand), the overall health of the business, and whether current trading supports the repayments. Call us and we will give you an honest view.

Related services

Business Loans VAT Business Loans Cash Flow Loans Short-Term Business Loans Fast Business Loan

Get funding ahead of your deadline

The earlier you call, the more options are available.

If your payment is due within the next two weeks, call now.

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