Navigating Corporation Tax Loans: Strategies for Financial Success

Navigating Corporation Tax Loans: Strategies for Financial Success

/0 Comments/in /by

With so many different options available, it can be tricky to decide which strategy will be best for your business. In this blog post, we’ll be discussing some of the key strategies for navigating corporation tax loans and setting your business up for financial success.

  1. Understanding Corporation Tax Loans

Before we go any further, let’s first take a moment to understand what corporation tax loans are. In basic terms, corporation tax is a tax that limited companies pay on their profits. This tax must be paid annually, and the deadline for payment is typically nine months after the end of your accounting period. If you find yourself unable to pay your corporation tax bill on time, you may consider taking out a corporation tax loan. These loans will allow you to spread the cost of your tax bill over a longer period of time, giving you more breathing space.

  1. Know Your Options

When it comes to corporation tax loans, there are several options available. One popular option is a bank loan. However, it’s worth noting that bank loans can sometimes be difficult to secure, particularly for small businesses. Other options include invoice financing or asset financing. It’s worth taking the time to research all of the options available to you and decide which will be the best fit for your business.

  1. Consider Your Cash Flow

When deciding on a strategy for your corporation tax loan, it’s important to consider your cash flow. Taking out a loan can provide you with more breathing space in the short term, but it’s important to ensure that the loan repayments won’t negatively impact your cash flow in the long term. Before making any decisions, take some time to create a cash flow forecast and see how the loan repayment schedules will impact your business over time.

  1. Look to the Future

Finally, it’s important to always keep one eye on the future when dealing with corporation tax loans. While loans can be helpful in the short term, it’s important to ensure that you’re putting plans in place to avoid needing a loan in the first place. This may include putting money aside throughout the year specifically for tax payments or making changes to your business model to increase profits. By taking a proactive approach to managing your finances, you can set your business up for long-term success.

Managing corporation tax loans can be tricky, but by taking the time to understand your options and consider your cash flow, you can set your business up for financial success. By looking to the future and proactively managing your finances, you can ensure that your business is always on the right track. If you would like more information on key strategies for navigating corporation tax loans and setting your business up for financial success then please contact us.

What are the implications if you pay a Corporation Tax bill late?

/0 Comments/in /by

As a business owner, it is important to understand your responsibilities regarding tax payments. One of the most critical taxes that businesses have to pay is Corporation Tax. This tax is imposed on the profits made by your company, and late payment can attract hefty penalties. Therefore, in this post, we’ll explore what Corporation Tax is, why it is important to pay it on time, and what are the implications if you pay a Corporation Tax bill late.

What is Corporation Tax?

Corporation Tax is a tax charged on company profits in the United Kingdom. It is therefore calculated based on the profits made by your business for a particular accounting period, with adjustments made for certain expenses and allowances. Most companies must pay Corporation Tax within 9 months and one day after the end of their accounting period.

Why Is It Important to Pay It on Time

Paying Corporation Tax on time is a legal obligation for all companies. The penalty for paying late can start accumulating as soon as the payment deadline passes. The late payment rate is usually between 2% – 3% of the outstanding balance and increases with the length of time that the payment remains unpaid. However, interest is not charged on interest itself.

Implications of Paying Late:

There are several implications of paying Corporation Tax late. These include:

1. Financial Penalties: As mentioned earlier, you will be charged financial penalties for paying late. These penalties can have a significant impact on your finances, particularly if you are unable to pay the tax bill for several months.

2. Legal Action: If you continue to ignore payment reminders from HM Revenue and Customs (HMRC), they can take legal action against your business. This can therefore involve seizure of assets or court action to recover the outstanding balance.

3. Damage to Business Reputation: Late payment of tax can have negative implications on your business reputation. It portrays your business as unreliable and financially unstable. Therefore this can affect the perception of your customers, suppliers, and stakeholders.

4. Loss of Business Opportunities: Corporations with a history of late payments might face issues in securing funding or investors. They may also have difficulty in attracting new clients or customers as they are perceived as unreliable.

5. Personal Liability: However, in extreme cases, the directors of the company, or even the shareholders, can be held personally liable for the unpaid tax bill.

Contact Us

In conclusion, it is imperative that businesses understand their tax obligations, including payment deadlines and amounts. Paying Corporation Tax on time avoids unnecessary penalties, legal issues, and reputational damage. However if you are struggling to meet the payment deadline, or if you’d like to reduce cashflow pressures, a Corporation Tax Loan is an option many companies use to avoid late penalties. It is advisable to seek professional advice from a tax specialist or HMRC. With accurate financial planning and timely payment, businesses can avoid any unforeseen consequences and thrive in a competitive business environment. If you would like more information on what are the implications if you pay a Corporation Tax bill late, please call us on 01494 611 462.

Are HMRC clamping down on late Corporation Tax bill payments?

/0 Comments/in /by

For business owners, there’s nothing worse than receiving a late payment notice from HMRC. Late payments can cause unnecessary stress, add to your financial burden and damage your credit rating. Unfortunately, it seems that HMRC is cracking down on late corporation tax bills, and there are consequences for those who fail to pay on time. In this blog post, we’ll explore what this means for business owners and what you can do to avoid late payment penalties. Read on for more information on the question are HMRC clamping down on late Corporation Tax bill payments?

Late corporation tax payments have been a growing problem in the UK for some time now, with businesses struggling to keep up with their bills due to the pandemic. However, HMRC has announced that it will be cracking down on companies with late payments of tax, with stricter penalties for those who fail to pay on time. However at the time of writing HMRC haven’t detailed the exact penalties for company’s who’ve missed their Corporation Tax payment deadline.

To avoid late payment penalties, it’s important to stay on top of your corporation tax payments and ensure that they are paid on time. You can do this by keeping accurate records of your income and expenses throughout the year, and setting aside a regular amount each month to cover your tax bill. Alternatively, more and more companies are financing their bill and spreading repayments over a longer period.

It’s also worth noting that there are some circumstances where HMRC may waive the late payment penalty, such as if you have a reasonable excuse for the late payment, or if you can show that you’re taking steps to rectify the situation.

Contact Us

In conclusion, it’s clear that HMRC is taking a tougher stance on late tax payments and corporation tax payments are no exception. There are serious consequences for those who fail to pay on time. To avoid penalties, make sure that you’re aware of your tax obligations and that you keep accurate records throughout the year. If you’re struggling to meet your tax bill, or want to avoid cash flow pressures, don’t be afraid to reach out to Corporation Tax Loans. With the right approach, you can avoid late payment penalties and keep your business on track. To contact us and find out more on are HMRC clamping down on late Corporation Tax bill payments, please call us on 01494 611 462.

How to legally reduce your HMRC Corporation Tax Bill via an R&D Tax Credit

/0 Comments/in /by

As any company owner knows, we’re always looking for ways to minimize expenses and maximize profits while keeping your company in good legal standing. One way to accomplish this is through research and development (R&D) tax credits. If your company has invested in R&D, you may be eligible for valuable tax credits. In this article, we’ll discuss what R&D tax credits are and what types of work qualify. Also included is the process for claiming them, and how to legally reduce your HMRC Corporation Tax Bill.

What are Research and Development Tax Credits?

R&D tax credits are a government incentive designed to encourage businesses to invest in research and development. The credits are intended to subsidize the cost of projects and experiments intended to develop new products, processes, software, services, or materials. If your business is eligible, you can claim back up to 33p for every £1 spent on eligible R&D costs. Therefore even if your R&D project fails. These credits can be applied to reduce your corporation tax, or in some cases, to generate a cash payment.

Qualifying R&D Expenditures

To claim for R&D tax credits, you must have incurred expenses on R&D projects. These expenses include:

  • Employment costs: salaries, pension payments, and National Insurance contributions of R&D staff involved in developing the project.
  • Staff subcontractors: the cost of subcontractors, freelancers, or others who your company engaged to work with your R&D staff on the project.
  • Consumable items: including materials, utilities, and software used during R&D experiments or tests.

It is important to understand that any R&D project, however large or small, can qualify for tax credits. The key is that the development work attempts to improve an existing product or service or to create something new. The project’s technical challenges must not be straightforward or easily solvable by a competent professional in the same field. Companies operating in almost any industry or sector may potentially qualify.

Contact Us

If you are a business owner who has invested in R&D, it’s worth checking whether you qualify for R&D tax credits. The process of claiming credits can seem complicated and time-consuming; however, the rewards are significant. By working with a specialist R&D tax credit advisor, you can ensure that your claim is comprehensive and accurate, thereby maximizing the value of any tax credits you receive. It’s essential to remember that these tax credits are legitimate and claimable, so why not make the most of them? To find out more information on how to legally reduce your HMRC Corporation Tax Bill, please call us on 01494 611 462.

When does a company have to pay it’s Corporation Tax bill?

/0 Comments/in /by

As a company owner, it is essential to ensure that you understand your company’s tax obligations. One of these critical obligations is paying corporation tax. Corporation tax is a tax paid by all limited companies and certain organizations operating in the UK. However, many business owners are unsure about when they need to make these payments. In this blog post, we will explore the question of when does a company have to pay it’s Corporation Tax bill?

Different deadlines for paying Corporation Tax

When it comes to paying corporation tax, there are specific deadlines that you must meet. For example, if your company’s taxable profits are below £1.5 million, you are required to pay your corporation tax nine months and one day after the end of your accounting period. However, this is different if your company’s taxable profits exceed £1.5m. Then you are required to pay your corporation tax in quarterly installments throughout the year.

It is also important to remember that corporation tax is calculated based on your company’s profits for the current accounting period. If your company’s profits increase or decrease in the following accounting period, the corporation tax for that period will be adjusted accordingly. It is also worth noting that there may be changes to your corporation tax payment deadline. This happens if your company’s accounting period changes.

What happens if you don’t pay it on time?

If you fail to pay your corporation tax on time, you will be subject to penalties. The amount of the penalty will depend on how late the payment is. Also, it will depend on the size of your company’s taxable profits. For example, if you are two months late in paying your corporation tax, you will receive a penalty of 2.5% of the outstanding amount. If the payment is more than six months late, you will receive an additional penalty of 5% of the outstanding amount. Therefore, it is essential to ensure that you make your corporation tax payments on time. Or you could be facing costly penalties.

It is a good idea to keep accurate and up-to-date records of your company’s finances. This is to ensure that you do not miss your corporation tax payment deadlines. This record-keeping should include details of all income, expenses, and assets and should be updated regularly. It is also worth considering working with an accountant or tax advisor who can help you to manage your company’s tax obligations. They can also ensure that you meet all the necessary deadlines.

Contact Us

In summary, paying corporation tax is an essential part of running a business in the UK. As a business owner, it is your responsibility to ensure that you meet the required payment deadlines. This ensures you avoid penalties or interest. You can ensure that you meet your corporation tax payment obligations and avoid any costly penalties. This can be done by keeping accurate records of your company’s finances. Also by working with a tax advisor and understanding the different payment deadlines. Remember, keeping up to date with your corporation tax payments will contribute to the success of your business in the long run. For more information on when does a company have to pay it’s Corporation Tax bill? please call us on 01494 611 462 to speak to a member of our team.

What Are The HMRC Corporation Tax Rates At The Moment?

/0 Comments/in /by

Please note, this blog was written in June 2023
As a business owner, it is crucial to keep up to date with the ever-changing tax laws and rates in the UK. Corporation Tax, in particular, is an essential tax that businesses must pay on their profits. In this blog post, we find out the answer t the question; what are the HMRC Corporation Tax rates at the moment?

Currently, the rates of Corporation Tax in the UK start from 19%. It is worth noting that there are different tax rates for different types of businesses and income levels. Small profits up to £50,000 are taxed at a lower rate of 19%. In contrast, profits exceeding £250,000 are taxed at the higher rate of 25%, which is also known as the main rate.

For companies with profits between £50,000 and £250,000, there is a special tax rate called the Marginal Relief Scheme. This is therefore designed to provide a tax break for these businesses. As such, they are taxed at a rate between the 19% and 25% rates.

In conclusion, it is crucial to remain up to date with the current Corporation Tax rates in the UK. This will enable business owners to plan and manage their finances effectively. At present, the standard Corporation Tax rate is 19%. With lower rates for small profits and higher rates for large profits. However, it is essential to keep an eye on any proposed changes to the tax system as it’s known to change frequently. By doing so, business owners can prepare accordingly and ensure they are in compliance with HMRC regulations. Therefore you can avoid any larger than expected bills.

Contact Us

If you’re unsure on what Corporation Tax rate you should be paying, we would always recommend talking to your accountant. They should be in the best position to assist. For any tax loan requirements for your business, please call Corporation Tax Loans on 01494 611 462.

When does a UK Company have to pay it’s Corporation Tax bill?

/0 Comments/in /by

Understanding the timeline for paying Corporation Tax is crucial for every UK incorporated company. Whether you’re a large corporation, a small business owner, or a startup, you need to stay on top of your financial obligations to avoid penalties and interest charges. The Corporation Tax is a tax on profits, and it’s important to know when you are required to pay it. So, When does a UK Company have to pay it’s Corporation Tax bill? Let’s find out.

  1. When is the Corporation Tax liability due:

    Your Corporation Tax liability is due nine months and one day after the end of your accounting period. For instance, if your accounting year ends on December 31st, your Corporation Tax payment deadline is September 1st of the following year. The accounting period may be different from the financial year, and you should check with your accountant when your accounting period ends.

  2. Late payment penalties:

    If you fail to pay your Corporation Tax on time, you may face late payment penalties and interest charges. The penalties are based on the length of the delay and the amount of unpaid tax. See our blog on (insert late payment blog link) for more information.

  3.  Accounting period change:

    If you change your company’s accounting period, your Corporation Tax payment deadline will change too. You need to notify HMRC of the change within three months of the end of your new
    accounting period.

  4. Tax rate changes:

    The Corporation Tax rate may change from year to year. You need to check the current rate with HMRC as the rate may impact your Corporation Tax calculation. In conclusion, paying Corporation Tax on time is vital for all UK incorporated companies. You should be aware of your accounting period, Corporation Tax payment deadline, and any changes in tax rates. Failing to pay your Corporation Tax by the deadline incurred penalties and interest charges. It’s always wise to seek advice from a professional accountant to ensure you meet your financial obligations. Stay informed and stay on top of your finances.

Contact Us

For more information on when does a UK company have to pay it’s Corporation Tax bill? please contact us on 01494 611 462 to speak to a member of the team.

How Long Does It Take To Get A Corporation Tax Loan In Place?

/0 Comments/in /by

How Long Does It Take To Get A Corporation Tax Loan In Place?

Obtaining a corporation tax loan can be an effective way to manage your taxes. However, how long does it take to get one in place? This is a question we always get asked here at Corporation Tax Loans. The truth is it really depends on a variety of factors. For example, the size and complexity of your company and the amount you’re looking to borrow is a major factor. A company with more trading history (3 years +) will likely receive a quicker decision than a company in its infancy. Likewise a company with a strong balance sheet will receive a decision quicker than a company showing losses.

To help get your loan approved quickly, we’d recommend not leaving an application to the last minute. Beat the rush and relieve your stresses of potential late fees. Another tip we’d recommend is having your supporting information ready prior to making an application. For Tax loans you’re likely to be asked for last 3 months company bank statements. Also the latest set of full accounts and potentially some management accounts. By having this information ready for an application, you should be able to receive a credit decision in 1 – 2 working days.

What happens next?

Upon approval the loan paperwork is sent out for signing as soon as possible. This is usually the same working day, and upon signing all paperwork is sent for activation and HMRC is then paid. This would take 1 – 2 working days roughly.

Each business is looked at on a case by case basis, to get an idea on the potential repayment costs for your corporation tax loan please visit our Corporation Tax Calculator. Alternatively for an accurate quotation please contact a member of the corporation tax loans team on 01494 611 462 or email hello@corporationtaxloans.co.uk. For more information on how long does it take to get a corporation tax loan in place?, speak to one of our team members.

Welcome to Corporation Tax Loans

/0 Comments/in /by

Welcome to Corporation Tax Loans. We are the UK’s first website dedicated solely to Corporation Tax Loans for UK businesses.

If you’re a business facing a large corporation tax bill, or if you’re looking to avoid HMRC late repayment fees, then Corporation Tax Loans are a useful way to preserve your companies cashflow and resources.

By utilising one of our tax loans, you can therefore spread your corporation tax liability across a flexible term. This is your choice and can be from 3 months to 1 year, with loans starting from £5,000. Funding your corporation tax gives your company the ability to control cashflow. This is all whilst easily budgeting your fixed monthly repayments. Then payment is released directly to HMRC in a timely manner, whilst you’re able to preserve your existing funding lines for alternative uses.

About The Company

Corporation Tax Loans is owned by WestWon Limited. They are a well respected asset finance brokerage based out of Buckinghamshire. With over 360 years of combined finance experience, WestWon has worked with over 11,000 UK businesses. They offer finance solutions for a range of loan agreements and asset based funding.

With hundreds of 5* website and google reviews, customer service is at the forefront of what we do. Here at Corporation Tax Loans we’re confident that we’ll be able to help a business like yours.

Message from the CEO

WestWon Limited CEO Jeremy Hall says: “Welcome to Corporation Tax Loans, our dedicated website to companies looking to funding their Corp tax. Following the great success of our sister website – www.vatloans.co.uk we were getting asked more and more about Corporation Tax Loans for our customers. In April 2023 the main rate of corporation tax increased from 19% to 25%. This meant more companies than ever will need help in the funding of this tax. Our website is therefore designed to help these businesses. The saying ‘Cash Is King’ is now more pertinent than ever.”

Therefore, if you have a tax bill and would like a confidential conversation on how we can help you, please contact a member of the Corporation Tax Loans team and call 01494 611 462.

Contact Us

Portal Access

Corporate Information

© 2023 Tax Funding Limited T/A Corporation Tax Loans

The Financial Conduct Authority (FCA) regulates financial services in the UK and you can check this on the Consumer Credit Register by visiting the FCA’s website here or by contacting the FCA on 0800 111 6768. Tax Funding Limited T/A Corporation Tax Loans is a credit broker and not a lender. Corporation Tax Loans companies deals with a range of lenders. All Corporation Tax Loans’ companies hold a current Data Protection Licence. These details, together with our policy on Treating Customers Fairly, Complaints Policy and address details are held under our Get in Touch page.

This website uses Cookies to give you the best most relevant experience. Continued use of this site means you have accepted our policy.