Published 18 December 2018 · Last reviewed 18 December 2018 · Older article — see current rates
Need to pay a Tax bill in 2019, we might be able to help.
Corporation tax finance
Finance for tax bills is an sector we help with increasingly. It’s perhaps unsurprising the finances for tax bills have increased as the Government has increased property income tax and removed the ability to pay them by credit card. Also in the coming month’s tax on dividends is likely to accelerate to monthly, quarterly or half-yearly accountability to HMRC rather than being annual.
Finance for tax bills can come in all shapes and sizes: income tax, land and property tax, dividend tax, salary and corporation tax to name a few.
The Finance lenders response to raising money by a finance for tax bills is fairly consistent:
- First Charge Mortgage Lenders: most do not want to get involved.
- Second Charge Mortgage Lenders: generally more relaxed.
Short Term Finance Lenders: generally restricted to business tax such as corporation tax.- Unsecured loans can also help fund certain types of tax bills
At Niche Advice we are able to help provide finance for tax bills from all 3 camps. It goes without saying that the First Charge Finance Lenders will generally lend more and at better rates so this would probably be our first port of call unless you current finance is on good terms.
The 5 most important considerations when considering finance for tax bills are:
- Enlist the services of a Finance Professional
Choosing a Mortgage and Finance Broker that is experienced in finance for tax bills that can offer a range of solutions either first, second or short-term financing (such as Niche Advice) – not all can. - Outstanding tax liabilities
Again, lean on an experienced Mortgage and Finance Broker used to organising finance for tax bills as they are more likely to be able to improve your chances of finding a Finance Lender that does notinsist on all tax liabilities being paid up-to-date. - The right lender
Select a Finance Lender that allows finance for tax bills. Not many do, and some prefer business tax rather than the personal tax due to regulatory restrictions. - Don’t delay / wait for January
If you are looking at paying your 2017/8 tax bill then you must act now. Don’t be fooled that the release of money will be quick. Finance Lenders that lend on finance for tax bills processes are labor intensive rather than automated like a Halifax or Santander. They have to be as the risk is greater and every case needs an Underwriter to look at it. - Legacy tax bills
If the tax bill is a hangover from three or four years ago then the difficulty of achieving a positive outcome on finance for tax bills increases massively. Why? Well, the Mortgage Lenders think you may be a person that buries their head in the sand – and will be concerned you may apply the same approach to their mortgage payments.
Niche Advice is Mortgage Broker that can support applicants looking for finance for tax bills. We are a success based only charging a fee once the mortgage has been fully agreed and funds are released.
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