Tax & VAT Finance
What is Tax and VAT Finance?
Tax and VAT finance is a short-term funding solution designed to help businesses spread the cost of their tax liabilities, such as Corporation Tax, VAT, or Self-Assessment Tax liabilities. Rather than paying a large lump sum, businesses can access tailored finance to ease cash flow pressure, ensuring they meet their obligations on time without disrupting day-to-day operations.
This type of finance is particularly useful for companies facing seasonal fluctuations, delayed customer payments, or unexpected expenses, allowing them to maintain financial stability while keeping up with tax commitments.
How does Tax and VAT Finance Help Businesses in the UK?
Tax and VAT finance provides UK businesses with a structured way to manage large tax payments without negatively impacting their cash flow. Here’s how it helps:
Improves Cash Flow Management - Instead of making a single large payment to HMRC, businesses can spread the cost over manageable monthly instalments, preserving working capital for essential expenses.
Prevents Late Payment Penalties - Missing tax deadlines can result in costly fines and interest charges. This type of finance ensures businesses meet HMRC obligations on time, avoiding unnecessary penalties.
Supports Business Growth & Investment - By freeing up cash that would otherwise be tied up in tax payments, businesses can invest in expansion, staff, or equipment without financial strain.
Provides Financial Flexibility - Whether dealing with seasonal revenue fluctuations or unexpected costs, tax finance offers businesses the breathing space they need to focus on growth rather than short-term financial pressures.
It’s a smart solution for businesses that want to stay compliant while keeping their cash flow healthy and operations running smoothly.
How can AJL Finance help you?
We can source Tax and VAT finance facilities on your behalf. VAT finance is provided over a 3-month term (to coincide with a businesses quarterly VAT cycle). Tax finance can be provided over 3, 6, 10 or 12 months depending on your preference.
We are able to assist Sole Traders, Partnerships, LLP’s and Limited Companies for these types of facilities. In most instances, we are able to obtain terms with no Personal Guarantees required. The lender’s minimum criteria means that we can only transact facilities over £10,000.