Which tax liabilities can be funded?

Corporation tax and VAT are commonly funded. Availability depends on the provider and your circumstances.

How can I model spreading a VAT or tax bill?

Use Tera's VAT and tax bill calculator to compare spreading a known HMRC liability over representative months with paying in one lump sum. It is a planning tool, not HMRC Time to Pay and not a quote. This page covers tax and VAT funding as a product.

VAT finance is borrowing that may be used to meet a VAT liability while spreading repayment. The VAT Finance UK guide explains how it works and how it differs from HMRC Time to Pay. Businesses exploring funding for an upcoming VAT or tax liability can use this Tax & VAT Funding page to understand the funding route and application process.

Tax and VAT funding

Manage tax and VAT obligations with confidence.

Tax and VAT funding may help businesses spread the cost of tax bills, preserving cash flow for operations.

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Tera arranges finance from a panel of lenders. We are not a lender.

Overview

Tax and VAT funding provides short-term finance to cover corporation tax, VAT or other tax liabilities, repaid over an agreed period. Use the VAT and tax bill calculator to model spreading a known bill; the VAT finance guide explains what VAT finance is. This page is for businesses exploring a tax or VAT funding requirement.

How it works

Funding is provided to cover the tax liability, with repayments structured over months. The facility is typically short-term.

Common uses

Corporation tax payments
VAT quarter payments
Self-assessment for businesses
Cash flow management around tax deadlines

Benefits

May preserve working capital
Can smooth cash flow around tax deadlines
Quick arrangement in many cases

Considerations

Costs should be weighed against alternatives
Only covers verified tax liabilities
Terms are typically short

Information required

Tax liability amount and deadline
Recent accounts
Existing borrowing details

Who may consider

Businesses facing significant tax payments
Companies with strong trading but tight cash timing
Seasonal businesses with uneven cash flow

The process

1.Share tax funding requirements through Tera's assessment
2.Provide accounts and tax liability details
3.Review suitable funding options
4.Complete the provider's application

Example: VAT quarter

A business with a large VAT payment due may use tax funding to spread the cost while maintaining operational cash reserves.

This is an illustrative example only. Suitability depends on individual circumstances.

Tax and VAT funding FAQs

Tools and resources

Get a quote

Tell us what your business needs.We'll handle the next steps.

Complete the short form and a Tera commercial finance specialist will review your requirement and contact you to discuss suitable next steps.

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