HMRC tax pressure: which finance fits

Yes, UK limited companies, LLPs and partnerships of 4+ can borrow to clear an HMRC bill. The main routes are a VAT loan for a quarterly VAT bill, working capital for PAYE arrears, a Corporation Tax bridge, and weighing any of these against HMRC Time to Pay. FundBiz routes your file to specialist lenders that engage with HMRC pressure.

FundBiz routes to specialist lenders for HMRC tax-pressure scenarios where mainstream lenders typically decline. These pages cover the specific finance products and panel lenders we route to, and weigh borrowing against the alternatives such as HMRC Time to Pay.

OM

Oliver Mackman

Director, FundBiz

Oliver leads FundBiz's specialty finance comparison and matching engine. With a background in UK commercial finance, he oversees lender partnerships, eligibility logic and post-decline routing.

Last reviewed: 1 July 2026

Which HMRC pressure, which route

VAT bill

What it is: A quarterly VAT bill you cannot cover in one thin cash month.

Finance route: A VAT loan sized to the bill, repaid across the next VAT quarter. The lender pays HMRC directly or sends you the funds.

VAT loans: cost and eligibility |VAT loan emergency

PAYE and NIC arrears

What it is: PAYE and National Insurance arrears stacking up with HMRC.

Finance route: Working capital from lenders that engage with existing HMRC arrears, usually with a director personal guarantee.

PAYE arrears funding

Corporation Tax

What it is: Profitable trading but cash is stretched at the Corporation Tax due date.

Finance route: A short bridge that competes with HMRC Time to Pay interest and clears the bill on time.

Corporation Tax bridge

HMRC Time to Pay (TTP)

What it is: HMRC’s own instalment plan for a tax bill you cannot pay on the due date.

Finance route: Often the cheapest option because it charges HMRC’s official late-payment interest rate. Compare it against a loan before you borrow.

VAT loan vs HMRC Time to Pay

Start with a VAT bill?

A VAT loan is the most common HMRC-pressure route we place. See what it costs, how fast it funds, and how it compares to HMRC Time to Pay.

VAT loans: cost, rates and HMRC alternatives →

Frequently asked questions

Can I get a business loan to pay an HMRC bill?

Yes. UK limited companies, LLPs and partnerships of 4 or more can borrow to settle VAT, PAYE or Corporation Tax, and some lenders pay HMRC directly. FundBiz routes your file to specialist lenders that engage with tax pressure, using a soft search that leaves no footprint on your credit file.

Can I get a loan to pay a VAT bill?

Yes. A VAT loan is a short-term facility sized to your quarterly VAT bill. The lender settles HMRC or sends you the funds, and you repay over the next VAT quarter. See our VAT loan page for cost illustrations and eligibility.

Is there finance for PAYE arrears?

Yes. Working-capital lenders on our panel will consider PAYE and NIC arrears, especially where the business is trading profitably. Terms are tighter and a director personal guarantee is usually required. Our PAYE arrears funding page explains what lenders want to see.

Is HMRC Time to Pay better than a loan?

Often, but not always. Time to Pay charges interest at HMRC’s official late-payment interest rate, which is usually lower than a loan’s monthly rate. A loan wins on speed, on keeping HMRC off your file, and where a Time to Pay request is declined. Compare both before you decide.

Can I get finance with existing HMRC arrears?

Sometimes. Specialist lenders will consider a file with existing HMRC arrears, particularly if trading is profitable and the arrears are being addressed. Expect tighter terms and a personal guarantee. FundBiz routes these files to the lenders most likely to accept them.

Decide whether to borrow first

Borrowing into HMRC pressure is a commercial decision. Weigh it against HMRC Time to Pay before you commit, and be sure borrowing is the right move for your situation.

Once you've decided to borrow, our matcher routes to specialist UK lenders that genuinely engage with HMRC arrears, VAT-due funding, and Corporation Tax bridges. We are an introducer, not a lender; we earn commission when introductions complete.

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