Featured - Account Types
What type of savings account do you need?Find out about the different types of savings accounts available to suit a variety of needs.
Savings
ISAs
Residential
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - Life Insurance
Life InsuranceFor peace of mind that your loved ones will be supported financially after you die, consider taking our life insurance. Find out more and compare policies.
Home & vehicle
Health & travel
Featured - High interest current accounts
Find current accounts offering in-credit interest rates up to 5.00% AER.
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Business savings
Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
Categories
Featured guides
Popular news
Latest news - by category
Other money & finance news
Featured Star Ratings categories
Other Star Ratings categories
Featured - Account Types
What type of savings account do you need?Find out about the different types of savings accounts available to suit a variety of needs.
Savings
ISAs
Residential
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - Life Insurance
Life InsuranceFor peace of mind that your loved ones will be supported financially after you die, consider taking our life insurance. Find out more and compare policies.
Home & vehicle
Health & travel
Featured - High interest current accounts
Find current accounts offering in-credit interest rates up to 5.00% AER.
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Business savings
Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
Categories
Featured guides
Popular news
Latest news - by category
Other money & finance news
Featured Star Ratings categories
Other Star Ratings categories
A VAT loan is used to pay the quarterly VAT bill of VAT registered businesses. The lender pays the VAT bill directly to HMRC and the business then makes monthly repayments to the lender. This means the business can used the money free up to invest in its business or to respond to fluctuations in revenue or increasing costs, for example due to seasonality.
Businesses that are struggling to pay their VAT due to problems with their cashflow can also consider asking HMRC for a longer payment period.
A VAT loan can be used for one quarter or be made available on a drawdown basis. This means the business can call upon the lender quickly and on an ongoing basis.
Usually, VAT lenders will want businesses to be based in the UK, to be a limited company and to have a trading history of more than 12 months. Turnover should also be more than £90,000. VAT loans are available to many different types of businesses from manufacturing firms to professional services, agricultural businesses to IT consultancies. And, the most obvious requirement is that the business should be VAT registered.
A business broker will help you determine if a VAT loan is the most suitable form of finance for your business, Other alternatives include business credit cards, invoice finance, asset finance or a business loan.
A VAT loan will be paid directly to HMRC, ensuring that you meet the legal requirements of being VAT registered and avoid any late payment surcharges. Instead of paying one single quarterly bill, this can be smoothed across three-months – although there will be interest to pay on the VAT loan. Money released from using a VAT loan ca be invested into other business areas.
VAT loans can be expensive compared to other forms of business finance. Business owners should consider the cost of this finance compared to other lending options along with how quickly they need access to the funds.
If you are VAT registered, then your business needs to be able to pay its VAT liabilities to be viable. Your business should look to save the money owed each month to make sure it has enough funds ready to pay your quarterly tax bill. There can be reasons when this becomes difficult and when asking HMRC for an extension may help. In addition, you may want to release cashflow early in which case a VAT loan can be a way to do this quickly and conveniently.
Find the best business savings accounts for your VAT cash.
Your business must register for VAT if your VAT taxable turnover is going to be more than £90,000 or if you know that it will exceed this amount. There are specific deadlines for when this registration must be completed by, the HMRC has more information about VAT deadlines and registration.
VAT returns and deadlines to pay your VAT bill can be checked using your VAT online account.
All of our newsletters are available free by email to all Moneyfactscompare.co.uk users.
Send me Weekend Moneyfactscompare, Savers Friend, Companies Friend and selected third-party offers.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
A personal guarantee is when you agree to repay a debt if your business is unable to. This can help a business to access finance, but there are some risks you need to consider first.
A personal guarantee is when an individual agrees to personally repay a debt if their business is unable to.
Business loans and personal loans are both options if you need to borrow money, but there are several key differences between them. Find out which type of loan could be right for your requirements.
Business loans and personal loans are options if you need to borrow money, but there are several key differences between them.
Payments made in cash now only account for 23% of all total payments made in the UK. Find out more about how your business could accept card payments with a low cost and easy to use card machine for payments instore or how to accept payments online.
Find out more about how your business could accept card payments with a low cost and easy to use card machine for payments instore and online.
Employers’ liability insurance covers the compensation and legal costs should you be held liable for an employee’s illness or injury.
Employers’ liability insurance covers the compensation and legal costs should you be held liable for an employee’s illness or injury.
A personal guarantee is when you agree to repay a debt if your business is unable to. This can help a business to access finance, but there are some risks you need to consider first.
A personal guarantee is when an individual agrees to personally repay a debt if their business is unable to.
Business loans and personal loans are both options if you need to borrow money, but there are several key differences between them. Find out which type of loan could be right for your requirements.
Business loans and personal loans are options if you need to borrow money, but there are several key differences between them.
Payments made in cash now only account for 23% of all total payments made in the UK. Find out more about how your business could accept card payments with a low cost and easy to use card machine for payments instore or how to accept payments online.
Find out more about how your business could accept card payments with a low cost and easy to use card machine for payments instore and online.
Employers’ liability insurance covers the compensation and legal costs should you be held liable for an employee’s illness or injury.
Employers’ liability insurance covers the compensation and legal costs should you be held liable for an employee’s illness or injury.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.