Corporation Tax Loans – Spread Your Corporation Tax Bill
Corporation Tax funding built around the annual tax cycle. Your bill is paid on time and the cost is spread across twelve fixed monthly repayments.
- £1,000 – £500,000
- 12 fixed monthly repayments
- Unsecured – often no personal guarantee
- Often arranged in 24 – 48 hours
Funding for Corporation Tax bills
One large annual bill becomes twelve predictable payments
Corporation Tax is payable nine months and one day after your accounting period ends – often before the money is comfortably available. Funding it protects working capital without disrupting trading.
Protect working capital
Keep cash in the business for stock, wages, suppliers and growth instead of settling a full year’s tax in one payment.
Fixed monthly repayments
Repayment amounts are fixed and known before you commit, so the cost can be planned into your cash flow.
HMRC paid on time
Avoid late‑payment interest and escalating HMRC recovery action by settling the bill by the deadline.
Facilities left free
Existing overdrafts and lending stay available for trading rather than being absorbed by a tax bill.
One tax bill, twelve manageable payments
Corporation Tax is due nine months and one day after your accounting period ends. Funding it turns a single annual outgoing into a predictable monthly cost.
The Corporation Tax liability is funded so HMRC is paid in full and on time.
You repay the funded amount plus the agreed cost in twelve equal monthly instalments.
The facility can be reviewed and arranged again for the following Corporation Tax year.
Terms vary by lender and by business. All costs are confirmed to you in writing before anything is signed.
See what your Corporation Tax bill would cost to spread
Enter your Corporation Tax liability to see an indicative twelve‑month repayment profile. Figures are illustrative only and subject to underwriting.
Between £1,000 and £500,000. Based on an indicative 9.3% cost of funding over the 12‑month term.
Indicative 12‑month profile
Corporation Tax paid on time
per month for twelve months
Illustration only. Not a quote or an offer of finance. Final terms depend on lender underwriting.
Check my eligibilityWhat is Corporation Tax?
Corporation Tax is a direct tax a UK limited company pays on its profits. It is calculated and paid annually around your Corporation Tax accounting period, which usually matches your company’s financial year.
What you must do for Corporation Tax
HMRC does not send a bill for Corporation Tax. Instead you must:
- Register for Corporation Tax within three months of starting to trade (dormant companies do not need to register)
- Keep accounting records and prepare a Company Tax Return to work out how much Corporation Tax to pay
- Pay your Corporation Tax by the deadline – normally nine months and one day after the end of your accounting period
- File the Company Tax Return, which is due twelve months after the period end
Because the payment deadline falls before the filing deadline, the money often has to leave the business before the return is even submitted – which is exactly when a large liability can be difficult to absorb.
Can I take a loan to pay Corporation Tax?
Yes. A corporation tax loan spreads the cost of your tax demand into more affordable monthly payments. SME Loans arranges unsecured funding for Corporation Tax from £1,000 to £500,000, so in most cases there is no need to provide business collateral.
Funding should still be approached with care. If your business’s finances are under genuine strain, taking on further borrowing may not be the right answer – we will tell you if we think another route fits better.
Why businesses fund their Corporation Tax
- Avoid HMRC interest and escalating recovery action
- Protect working capital for stock, wages, suppliers and growth
- Turn one large annual outgoing into twelve predictable payments
- Keep existing facilities and overdrafts free for trading
- Plan with certainty – repayment amounts are fixed and known upfront
What happens if you cannot pay?
Interest accrues from the day a Corporation Tax payment is late, increasing the total owed. Continued late payment can lead to further HMRC action and, in the worst case, a petition for the compulsory closure of the company. If you are worried about a bill you cannot meet, act early – there are options, and they are wider before the deadline passes.
Applying before your Corporation Tax deadline
Where possible, start your application a few days before the payment is due. Facilities can often be arranged within 24 to 48 hours, but leaving time avoids unnecessary pressure on the deadline.
Corporation Tax funding vs an HMRC Time to Pay arrangement
Both can help when a tax bill lands at a difficult moment. They work very differently, so here is a straight comparison.
| Corporation Tax funding | HMRC Time to Pay | |
|---|---|---|
| How HMRC is paid | In full, on time | In instalments, after the due date |
| Typical term | 12 monthly repayments | Agreed case by case, often shorter |
| Cost | Fixed, agreed and known before you commit | HMRC interest on the outstanding balance |
| Availability | Subject to lender underwriting | Discretionary – HMRC decides |
| Conditions | Normal affordability and trading checks | HMRC generally expects no other tax debts or payment plans |
| Record with HMRC | Paid on time | Late payment recorded and monitored |
If your business is already in difficulty, a Time to Pay arrangement may be the more appropriate route – speak to us before applying and we will say so honestly.
How to get a corporation tax loan
Use the calculator
See illustrative monthly repayments for your Corporation Tax bill before you speak to anyone.
Apply online
Complete the short funding assessment: your business, time trading, turnover and the amount you need.
Talk it through
Your enquiry is reviewed against our lender panel and an account manager talks you through the options.
HMRC is paid
Sign the documentation and the Corporation Tax bill is settled, usually within 24 to 48 hours.
Am I eligible for a corporation tax loan?
Corporation tax funding is typically available from £1,000 up to £500,000, based on the size of your tax liability and what your business can comfortably afford to repay each month.
Many corporation tax facilities are unsecured, meaning no business or personal asset is used as security. A personal guarantee may be requested by the lender, particularly for larger amounts. Anything required will be made clear before you commit.
Lenders will usually expect your business to
- Be a UK‑registered limited company liable for Corporation Tax
- Have been trading, typically for at least 6–12 months
- Have a business bank account and up‑to‑date accounts
- Be able to demonstrate affordability of the monthly repayments
Typical applicants
Frequently asked questions
What is a corporation tax loan?
A corporation tax loan is a way to break a business’s Corporation Tax bill down into fixed monthly instalments. HMRC is paid in full and on time, and your business repays the funded amount over an agreed term – typically twelve months.
It is used by profitable businesses that would rather keep working capital in the business than settle an annual tax liability in one lump sum.
How can I get a corporation tax loan?
Start with the calculator on this page to see illustrative monthly repayments, then complete the short online funding assessment. We ask about your business, how long you have been trading, your turnover and the amount you need.
Your enquiry is reviewed against our lender panel and one of our account managers will talk you through the options available. Funding can often be arranged within 24 to 48 hours once the lender has what it needs.
How much does a corporation tax loan cost?
The illustrative cost of funding used on this page is 9.3% of the amount funded over 12 months. On a £50,000 Corporation Tax bill that is £4,650, giving twelve monthly repayments of £4,554.17 and £54,650 repayable in total.
Your actual cost depends on your business, its trading history and the lender that funds the facility. All costs are confirmed to you in writing before anything is signed.
How much can my business borrow to pay Corporation Tax?
Corporation tax funding is typically available from £1,000 up to £500,000, based on the size of your tax liability and what your business can comfortably afford to repay each month.
Do I need to secure the loan against business assets?
Many corporation tax facilities are unsecured, meaning no business or personal asset is used as security. A personal guarantee may be requested by the lender, particularly for larger amounts.
Can I arrange a payment plan with HMRC instead?
You may be able to agree a Time to Pay arrangement with HMRC. It is discretionary, interest is charged on the outstanding balance, and HMRC generally expects you to have no other tax debts or existing payment plans.
What happens if I do not pay my Corporation Tax on time?
Interest accrues from the day the payment is late and continued non‑payment can lead to further HMRC action, in the worst case a petition to close the business. Funding the bill keeps HMRC paid on time and your record clean.
When is Corporation Tax due?
Corporation Tax is normally payable nine months and one day after the end of your accounting period, with the Company Tax Return due twelve months after the period end. Because the payment deadline comes first, many businesses arrange funding before the return is filed.
Why choose SME Loans for your corporation tax loan?
We are a UK business finance brokerage: we look across a panel of lenders rather than offering a single product, and we tell you what a facility will cost before you commit. Checking your options does not commit you to anything.
Ready to spread the cost of your Corporation Tax?
Tell us a little about your business and we will look at the Corporation Tax funding options available to you. A short online application, no obligation, and no impact from simply checking your options.
Check my eligibility