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Separate the money early
Open a dedicated tax account and move the tax portion of each payment across as it comes in — the VAT you charged, plus a slice of profit for corporation tax. If it never sits in your main account, you cannot spend it. See the full method.
Use sensible percentages
Set aside the exact VAT on each sale, roughly 19–25% of profit for corporation tax, and PAYE/NI if you have staff. Erring slightly high means a small, welcome surplus at year end. Use the VAT calculator.
What it means for you
If timing still bites, short-term finance bridges the gap.
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
What percentage should I set aside?
The exact VAT on each sale, roughly 19–25% of profit for corporation tax depending on your band, plus PAYE and NI for staff. Erring high avoids shortfalls.
What if I have already spent the tax money?
Rebuild the habit immediately, and if a bill falls due first, arrange a Time to Pay with HMRC or a short facility. Missing the deadline is the most expensive outcome.
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