- How does tax funding work?
- What are the benefits of tax funding?
- How can I apply for tax funding in the UK?
- Why choose JPM Capital for tax funding?
- 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
|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?
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.