Tax Funding with JPM Capital

JPM Capital endeavours to provide timely and appropriate solutions to all of our clients funding needs.

Tax
Funding

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What is tax funding?

Tax funding, or tax loans, is a financing solution that is used by businesses that may struggle with managing tax payments. Tax funding is used to spread the cost of tax payments and ensure that a business makes said tax payments on time.

Tax funding can be used by any business, but is typically used by small businesses and sole traders who may not have the necessary cash reserves to fully cover the tax payment.

tax funding
  1. How does tax funding work?
  2. What are the benefits of tax funding?
  3. How can I apply for tax funding in the UK?
  4. Why choose JPM Capital for tax funding?
  5. Do I have to pay tax as a sole trader or a limited company?

How does tax funding work?

A business will have tax deadlines throughout the year, but sometimes the cost of the tax bills can leave businesses without a sufficient amount of cash flow to confidently continue trading. A tax loan lets business spread the tax payment into manageable monthly payments, which limits the impact on cash flow and working capital.

What can tax funding be used for?

Tax funding can be used for both personal and corporate tax bills. Tax funding can be used to cover:

  • PAYE bills
  • VAT bills
  • Corporation tax bills
  • Income tax bills
  • Self Assessment Tax bills

For more information on what type of tax can be covered via tax funding, you can speak to one of our account managers at 01244 207276.

Why do businesses apply for tax funding?

Tax funding is useful for businesses that want to pay their tax bills on time, but do not want to remove a large amount of money from their cash flow or capital reserves. It lets SMEs manage their cash flow more effectively as they are allowed to spread the tax payment over a period of time. 

By managing cash flow effectively, it allows a business to invest money into other areas of the business.

Who can apply for tax funding?

All businesses are required to pay tax, therefore tax funding is available to a number of business types. The most common businesses that apply for tax funding include:

  • Limited companies
  • Small businesses
  • Sole traders
  • Startup businesses
  • Seasonal businesses

What are the benefits of tax funding?

  • Quick turnaround, decisions within 24 hours
  • Minimal red-tape / information required to process application
  • Can fund Personal or Corporate Tax Bills
  • Flexible repayment options, typically 6 – 12 months
  • Can fund historic Tax / Tax arrears
  • Payment direct to HMRC if required
  • Separate from existing bank facilities
  • Dedicated Account Manager handing application from start to finish

How can I apply for tax funding in the UK?

To apply for tax funding with JPM Capital, you can either call us on 01244 207276 or via our online quote form found at the bottom of the page. You will be put in contact with one of our experienced and dedicated account managers who will help you with the application from start to finish.

Business Loan Summary DETAILS
How much can I borrow? £5,000 – £50,000
How long can I borrow for? 3 – 36 months
What is the interest rate on an unsecured business loan? 2% – 2.5% per month
Do I need to pay a fee? Typically 1% fee, on drawdown
Do I need to sign a personal guarantee? Yes

How long does it take to process a tax loan application?

At JPM Capital, we aim to complete successful tax loan applications within 24 – 48 hours, to ensure fast funding. Once the application is approved, an e-sign document is used to complete the form. The funds will be transferred the same day as when the document is signed.


Why choose JPM Capital Limited for tax funding?

We are a direct lender who specialises in providing unsecured commercial finance to businesses in the UK. Having previously been a credit brokerage, we converted to a direct lender in 2021 so that we could provide a fast and reliable lending service which could help businesses grow.

In addition, JPM Capital is authorised and regulated by the Financial Conduct Authority in addition to being a member of the National Association of Commercial Finance Brokers (NACFB). This ensures what we meet to the highest standards of compliance, as well as staying up today with all financial solutions on the market.

To learn more about how we have helped businesses find the funding solutions they need, please read out customer case studies.

What other loans can JPM Capital broker?

Here at JPM Capital, we work with a number of lenders to broker a variety of funding solutions to businesses across the UK. Some of the most popular funding solutions include:

To see the full range of financing options that JPM Capital brokers, please read our funding solutions page.


Do I have to pay tax as a sole trader?

As a sole trader you will have to pay a self assessment tax return. You must send a tax return if in the last tax year (6 April to 5 April) you earned over £1,000 (before tax relief). To pay your tax bill you must register by the 5th October and repay the self assessment bill by the 31st January. 

If your business as a sole trader has a turnover above £85,000 you must register for VAT. This means that you will also have to submit VAT returns to HMRC following your registration.

To learn more about self assessments, please check out the government website.

Do I have to pay tax as a limited company?

The tax structure of a limited company generally differs from a sole trader, but ultimately limited companies do have to pay tax. Limited Companies must pay corporation tax on their profits, so must register for corporation tax. They must also register for VAT if the business earns over £85,000 in the financial year.

Tax will also have to be paid on personal income that is paid, whether it is a salary or in dividends.

What happens if I do not pay my tax bill on time?

Missing a tax payment deadline should always be avoided, as it can lead to penalties. If HMRC believes that you will not be able to pay your tax payment in full now, but you can pay in the future they may offer you extra time.

However, if HMRC doubts that you will be able to make your tax payments on time, they will ask you to pay your tax bill immediately. If you fail to do so, HMRC will begin the process of ‘enforcement action’ to receive the money from you.

Paul is calm, thoughtful and positive during a period where so many businesses are in panic. I am thankful for his and JPM's continued support and will continue to recommend clients in need to Paul.
Accountants - Glasgow
Featured Case Study

Accountancy firm with cash-flow needs and client funding requirements

We recently dealt with an Accountancy firm who has suffered immediate cash-flow problems as a result of the recent unprecedented global contagion. Clients who paid monthly direct debit retainers have cancelled and debtors which have been due into the firm have requested payment terms. At a time when clients need Accountancy support more than ever it is important that our client was using his time to support clients and not chasing bills!

View success story

To discuss funding today please fill out our get a quote form
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Call 01244 207276

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