Loans For Tax Bills - Finance To Pay HMRC, PAYE, VAT and Self Assessment
Key Features
- Borrow from £5,000 to £500,000
- Terms from 6 to 60 months
- No property or assets required as security
- Covers corporation tax, self assessment, PAYE and VAT
- Representative APR 18.9%
- Applicants with poor credit considered
- Funds available in as little as 48 hours
We have partnered with Acceptance, who can provide an indicative quote and successful funding within 24 hours.
Octagon Capital helps UK businesses borrow the money to pay their tax bill in one go - keeping HMRC happy while the cost is spread across manageable monthly payments.
Got A Tax Bill To Pay? Start Your Application
"*" indicates required fields
How Do Loans To Pay Tax Bills Work?
Tax bills tend to arrive in large, fixed amounts on dates set by HMRC, and they don’t always line up with when your business has cash to spare. A profitable year can mean a much bigger corporation tax bill than expected. Directors and partners can also be hit with a self assessment balance plus their first payment on account, both due on the same day.
A tax bill loan solves the timing problem. The lender provides the funds, you pay HMRC the full amount by the due date, and you repay the loan in equal instalments over an agreed term. Octagon Capital has partnered with Acceptance, an established UK business lender, so our clients can access loans for tax bills from £50,000 to £500,000 without needing to secure them against property or assets.
With HMRC paid in full, there’s no late payment interest building up, no penalties to worry about and no risk of enforcement action. Your business keeps its cash for the things that help it grow.
Use a Tax Bill Loan To Pay
- PAYE
- Corporation tax
- Self Assessment
- Income tax
- VAT (see loans to pay VAT bills)
Tax Bill Loan Example
Priya is the managing director of a software consultancy in Bristol. The company has just had its best year yet, and its corporation tax bill comes to £90,000. That’s due nine months and one day after the end of its accounting period.
The money is there on paper, but much of it is committed to new hires and a planned office move. Paying the full bill from the bank account would leave the business dangerously short.
Priya contacts Octagon Capital and is approved for a £90,000 loan over 36 months. The funds arrive ahead of the deadline, and she pays HMRC in full.
Based on a representative APR of 18.9%, the company repays around £3,230 a month, or roughly £116,000 in total. The hires go ahead, the office move stays on schedule, and the tax is dealt with on time.
(This example is for illustration only. Your rate and repayments will depend on your business and the lender’s assessment.)
Use Our Tax Bill Loan Calculator
Tell us how much you owe HMRC and how long you’d like to repay over. One of our advisers will come back to you with your options and what happens next.
"*" indicates required fields
What Are The Benefits Of Applying For A Tax Bill Loan Through Octagon Capital?
Avoid HMRC Charges – Paying your tax late triggers interest from the day after the deadline, plus penalties that grow the longer it goes unpaid. Settling in full and on time means none of these apply.
Keep Your Working Capital – Your cash is often already spoken for, whether that’s wages, suppliers, stock or investment. Borrowing for the tax bill means those plans don’t have to be put on hold.
One Predictable Repayment – You’ll know your monthly repayment before you sign, and it stays the same throughout. That makes forecasting far easier than juggling an open-ended HMRC debt.
Fast Decisions – Tax deadlines are fixed, so we move quickly. Applications are usually reviewed within 24 hours, giving you the best chance of paying before the due date.
Pay Off Early At No Extra Cost – If business picks up, you can clear the balance ahead of schedule without an early repayment fee. You only pay interest for the time you have the money.
What Is The Criteria For A Tax Bill Loan?
- UK-based business with a tax liability to HMRC
- Limited company, sole trader, partnership or LLP
- At least 12 months of trading
- Annual turnover of £50,000 or more
- Recent business bank statements (3 to 6 months)
- Not currently insolvent or subject to unpaid CCJs
Am I Eligible with Octagon Capital?
If your business has been trading for a year or more and is facing a tax bill it can’t comfortably cover from cash, there’s a good chance we can help. It doesn’t matter whether the bill is for the company itself or for the directors and partners who run it.
As part of our partnership with Acceptance, every application is looked at by a real person rather than just a computer. They focus on your current trading and whether the loan is affordable. That means a patchy credit history, or an existing payment plan with HMRC, doesn’t automatically count against you.
What Types Of Businesses Use Loans To Pay Tax Bills?
Any business can find itself with a tax bill that’s bigger than its available cash. These loans are especially common among:
- Professional services firms and consultancies
- Construction companies and contractors
- Property and lettings businesses
- Retailers and online sellers
- Restaurants, bars and hotels
- Logistics and haulage firms
- Directors and partners with large self assessment bills
Many of these businesses are profitable but have their money tied up in projects, property, stock or unpaid invoices. Tax is calculated on the profit they’ve made, not on the cash they have in the bank on the due date.
When those two figures don’t match, a tax bill loan lets the business meet its obligations to HMRC while keeping enough cash in hand to keep trading.
Tax Bill Loan FAQs
It’s a business loan used to settle money owed to HMRC in a single payment. You then repay the lender over a fixed term in monthly instalments.
No. The tax bill loans available through our partnership with Acceptance are unsecured.
You can typically borrow between £50,000 and £500,000, depending on your turnover and affordability.
You can borrow over 3 to 24 months, although some lenders may have different terms and there may be a different minimum (e.g 6 months) or a different maximum term (e.g 12 months).
Rates are set individually and confirmed before you commit. The representative APR is 18.9%, and the interest is built into your fixed monthly repayment.
The initial eligibility check is a soft search, which doesn’t affect your credit score. A full search may be carried out if you decide to go ahead with an offer.
Complete our quick form and an adviser will be in touch shortly. It helps to have the amount you owe and the payment deadline to hand. You can also call 0333 414 1491 or email sales@octagoncapital.co.uk.