- 02 May
Need Help Paying VAT Tax To HMRC?
We have just paid our most recent VAT (Value Added Tax) bill to HMRC - its always painful! Keeping your value added tax up to date requires a business to keep the money it collects from sales VAT (after offsetting any deductible purchase tax) separate, and if you have dipped into that money for cash flow purposes you can end up with serious problems paying your next bill - especially as its often only paid quarterly which means you can end up owing 3 months worth.
If you are struggling to pay your VAT bill and you don't have the money saved you could use invoice finance, even just short term, to generate the funds to pay it. This could be a one off and it could be arranged in just a few days.
Invoice finance, such as factoring or invoice discounting, releases the cash tied up in outstanding unpaid sales invoices. You can choose to get funding against certain invoices or all of them, for the short or long term. As an example, £100,000 of unpaid invoices at an 85% prepayment could generate £85,000 initially, with the balance (less charges), passed onto you when your customers finally pay. That could help you settle your VAT tax bill to HMRC