2 min read
Why VAT bills cause cash strain
The VAT you charge sits in your account looking spendable until the bill lands — often alongside payroll and other outflows. Read understanding your VAT bill. A short facility smooths that timing.
How financing it works
A facility covers the bill on the due date and is repaid as your customers pay you, avoiding HMRC surcharges and protecting supplier relationships. See bridging a VAT or tax bill and use the VAT calculator.
What it means for you
A timing gap need not become a compliance problem.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
Frequently asked questions
Is it sensible to borrow to pay VAT?
Yes, when it bridges a timing gap and is repaid as you collect from customers. It keeps you compliant and protects reserves. The alternative, missing the deadline, is far costlier.
What if I cannot pay my VAT at all?
Contact HMRC early about a Time to Pay arrangement and consider short-term finance. Acting early avoids penalties and interest, which build quickly on unpaid VAT.
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Can I get finance to cover a tax bill and VAT together?
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.