Corporation tax loans: spreading the January bill
A corporation tax loan spreads your company's corporation tax bill over 3-12 monthly repayments while a lender pays HMRC directly, on time. It works exactly like a VAT loan: soft-search eligibility check, quotes typically in hours, HMRC paid within days of acceptance.
The nine-month trap
Corporation tax is due nine months and one day after your accounting year ends - long enough for the profit that created the bill to have been reinvested in stock, people or kit. That is the trap: profitable companies hit a tax deadline exactly when the cash is busiest. A corporation tax loan resolves the timing without touching the growth.
How it works
Identical mechanics to a VAT loan: check eligibility with a soft search, receive quotes from matched panel lenders (typically in hours), and once you accept, the lender pays HMRC directly. You repay monthly over 3-12 months. The bill is met in full and on time - no surcharges, no HMRC conversation about arrears.
What it costs
Judged properly - in pounds, not percentages - a £30,000 corporation tax bill over 12 months costs from around £3,070/month at representative panel rates, a total credit cost of about £6,840 for keeping £30,000 in the business across the year. Six-month terms roughly halve the credit cost with a higher monthly. Our calculator shows every term side by side, including the dear one.
Planning beats reacting
The best time to arrange tax funding is around five weeks before the deadline: full choice of lenders, no urgency premium in the decision-making, and time to compare quotes properly. This is exactly what the Finneus platform automates - your year-end is public at Companies House, so we can nudge you before the bill bites, with options already shaped.
Who qualifies?
UK limited companies and LLPs trading 6+ months with filed accounts. The stronger the filing history, the wider the panel that competes.
Straight answers
Yes - they are separate facilities, and many companies run both across the year. Each is sized and quoted on its own merits.
It is a normal liability on the company - lenders on future deals will see it, as with any finance. Repaying cleanly is a positive data point.
Then finance may not be the answer - HMRC Time to Pay or restructuring advice may fit better, and we will say so rather than arrange something unaffordable.