With Corporation Tax year ends hitting an estimated 25% of UK limited firms at the end of March, paying the resulting Corporation Tax billing in instalments provides a convenient way for credit brokers’ customers to meet the cost and avoids HMRC late payment penalties.
Independent data from the Premium Credit Tax Index finds that around one in three SMEs (31%) interviewed would consider spreading the cost of tax bills for a small fee regardless of whether they struggle to pay their bills.
Making tax bills a manageable, monthly outgoing rather than a single, large annual lump sum payment can assist businesses by freeing up cash reserves to spend elsewhere and helping them perform better.
Credit brokers partnering with Premium Credit can facilitate flexible payment solutions for their customers’ Corporation Tax, VAT and self-assessment payments giving scope to spread the cost of a range of tax liabilities over a year.
Paying in monthly instalments is an easy, straightforward, and cost-effective process. It’s not only a valuable service to credit brokers’ customers but also provides sustainable income for brokers.
In summary, our financing products directly fund HMRC bills and spread the cost, allowing businesses to compliantly pay their bills in full and on time, making financial planning easier and safeguarding their cash flow. This provides a strong option for companies looking to maximise their income.
Karl Leitelmayer
Karl Lietelmayer works as a Sales Director within Premium Credit’s Specialist Lending Division, and has responsibility for Tax, VAT, Self Assessment and PII funding.
