Confirm the liability
The business provides evidence of the amount due, tax type, entity and payment deadline.
VAT and corporation tax funding guide
VAT and tax funding
Tax funding can spread an eligible VAT or corporation-tax liability over an agreed short period instead of paying it from working capital in one amount. Depending on the arrangement, the provider may pay HM Revenue & Customs directly.
Often considered for
- Managing a predictable VAT liability
- Spreading a corporation-tax payment
- Preserving operational cash around a tax deadline
- Aligning a known liability with expected business receipts
The structure
How vat and tax funding can work
The exact process, eligibility rules and legal structure vary by provider.
Assess affordability
The provider reviews current trading, bank conduct, existing commitments and the ability to meet instalments.
Settle and repay
If approved, the liability is funded under agreed terms and the business repays the provider over the facility period.
Lender assessment
What a provider may consider
- Evidence and timing of the tax liability
- Recent financial performance and cash flow
- Payment and filing history
- Existing borrowing and other near-term obligations
- Whether the liability indicates a temporary timing issue or deeper financial pressure
Prepare the evidence
Information that may support the request
- VAT return, corporation-tax calculation or HMRC evidence
- Recent accounts, management information and bank statements
- Short-term cash-flow forecast
- Details of existing tax arrears or payment arrangements
- Explanation of why funding is appropriate and affordable
Compare carefully
Points to understand before proceeding
- Compare the full finance cost with paying from available cash or other facilities.
- Check whether the provider pays HMRC directly and how payment evidence is supplied.
- If the business cannot pay tax when due, contact HMRC promptly to discuss available options.
- Funding a recurring tax shortfall may postpone rather than solve an underlying cash-flow problem.
Build the funding case
Present the need, evidence and repayment plan together
Fundry helps businesses organise a structured request for potentially relevant lenders to assess.
This guide provides general information only and is not financial advice or a recommendation. Product structures, eligibility, costs and terms vary by provider and remain subject to assessment. Review any offer carefully and seek independent advice where appropriate.