An unexpected Corporation Tax, VAT or PAYE bill can drain the cash you had earmarked for a loan payment. The key is to deal with both obligations openly rather than robbing one to pay the other.
Talk to HMRC about Time to Pay
HMRC runs a Time to Pay service that can spread a tax bill over instalments. Call the Business Payment Support Service on 0300 200 3835 before the deadline if you can — negotiating before enforcement starts is far easier.
Coordinate with your loan payment
Once you know your Time to Pay instalments, tell us, and we can shape a short arrangement or extension around them so the two commitments fit together. Interest continues at 0.25% per day and the 100% cap applies throughout.
Do not simply skip both
Ignoring either bill makes things worse. A coordinated plan across HMRC and us keeps the company trading and the arrears from compounding.
See how a Time to Pay affects us in the guide below, then tell us your plan.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: What an HMRC Time to Pay means for my Credicorp payments, Dealing with HMRC Time to Pay arrangements, How to prioritise which bills to pay first.