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Where HMRC ranks
In an insolvency, certain taxes the company collected for HMRC — VAT, PAYE and employee National Insurance — are paid as preferential debts, ahead of floating-charge holders and unsecured creditors. Taxes the company owes on its own account rank lower.
Why it matters
Preferential HMRC status reduces what a floating-charge lender expects to recover, which can affect appetite and pricing for secured lending. Unsecured borrowing is unaffected by this ranking dynamic.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Does HMRC get paid before my lender if I fail?
For VAT, PAYE and employee NIC, yes — HMRC has preferential status ahead of floating-charge and unsecured creditors, though not fixed-charge holders.
Why does this matter to a lender?
It reduces expected recovery for floating-charge lenders, which can influence their appetite and pricing on secured facilities.
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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.