Corporation Tax due. Spread the cost.
CT bill unpaid 9 months and 1 day after your year-end triggers daily interest at the BoE base + 4%. Large companies on quarterly instalments face separate underpayment interest. Funding is faster than letting it accrue. £10k to £1m, paid direct to HMRC.
10+
Specialist lenders
Indicative
Decision
£10k–£1m
Range
6–12mo
Typical term
What it is
Corporation Tax funding, nine months after year-end.
Corporation Tax falls due nine months and one day after your accounting year ends. For a March year-end company that's 1 January. September year-end: 1 July. The bill can land in the worst possible cash month. Particularly January, when Christmas trading costs have just cleared and profitable Q4 results have pushed the CT number up.
A Corporation Tax loan is a short-term commercial loan sized to the bill, paid direct to HMRC on the due date, and repaid over 6 to 12 months. Structure is identical to a VAT loan. Just sized to a bigger number and usually with a longer term.
Typical use case: profitable trading year produced a £100k+ CT bill, cash is tight because of seasonal factors or recent investment, you want to spread the payment across a full year rather than drain the reserve in January. Most CT facilities require a personal guarantee from directors. Above around £250k, lenders may also want an equitable charge or debenture, depending on covenant strength. Your broker will tell you exactly what each lender expects before you commit. Rates 1.0 to 1.6% per month, plus a 1 to 2% setup fee.
RATES & TERMS · APRIL 2026
Typical parameters for this product.
INDICATIVE
1.0–1.6%
Monthly rate
0.5–2%
Arrangement fee
6, 9, 12 mo
Term
£10k–£1m
Loan amount
HOW IT WORKS
Three steps. No drama.
1
Apply once bill is known
Ideally 4–6 weeks before the due date. Last filed accounts + latest management accounts + CT computation.
2
We route and quote
Larger tickets (£250k+) may need fuller due diligence. Smaller, clean files move faster.
3
HMRC paid on due date
Lender settles HMRC using your UTR and accounting period reference. Zero admin for you on the day.
Model your CT bill
CORPORATION TAX BILL
Corporation Tax loan calculator
Model the cost of spreading a Corporation Tax bill across 3 to 12 months.
Term
Monthly repayment
£14,893
per month for 9 months
- Setup fee (1%)£1,200
- Total interest£14,040
- Total cost of borrowing£15,240
Indicative only. Based on a typical rate of 1.3% per month plus a 1% setup fee. Final rate depends on lender appetite and your business profile.
QUESTIONS WE GET
Straight answers.
When is Corporation Tax actually due?+
Nine months and one day after your accounting period ends. So a 31 March year-end has CT due 1 January the following year. Large companies (profits over £1.5m) pay in quarterly instalments rather than a single lump sum.
Can we borrow for both VAT and CT at once?+
Yes, either as a combined facility or two separate loans. Most lenders prefer one facility covering all HMRC obligations to avoid stacking risk.
Our CT bill is due before the R&D credit arrives. What are our options?+
Three: a standard CT loan repaid when the R&D credit lands; an R&D advance facility specifically against the pending claim; or Time to Pay. For most companies a CT loan is cleanest. TTP can affect the HMRC relationship.
Is there a penalty for early repayment?+
Most lenders allow early repayment with reduced interest from that point forward. A few charge small early-repayment fees. We'll confirm terms in the loan offer before you sign.
Are CT loans available to LLPs?+
LLPs don't pay Corporation Tax. Partners pay personal tax on their share of profits. CT loans are for limited companies only. LLPs can still borrow for VAT, PAYE, and other firm-level obligations.
If you do nothing
What HMRC actually does next
HMRC is not out to get you. They have a job to do and they are good at it. These are the steps they take, in order, when a Corporation Tax bill goes unpaid. It is not scaremongering. It is the standard debt management process. Knowing the timeline means you can act before the next step arrives.
Stage 01
Day 0: missed deadline
Late-payment interest starts accruing at 7.75% per annum. Daily, not monthly.
Stage 02
Day 15 to 30: penalty cliff
First penalty of 3% at day 15. Another 3% at day 30. Both calculated on the unpaid balance at each date.
Stage 03
Day 31 onwards: the 10% accrual
A second penalty starts accruing daily at 10% per annum until paid in full. It compounds with the interest already running.
Stage 04
Weeks 4 to 12: reminder letters and phone calls
HMRC's Debt Management and Banking team send reminders and an officer phones to demand payment. This is the window where Time to Pay (TTP) is most achievable. After this window closes, Time to Pay arrangements get harder to negotiate.
Stage 05
Weeks 8 to 16: Field Force officer visit
A locally-based HMRC officer visits the business address to confirm contact details and check the current tax position. They can negotiate settlement for debts up to £100,000 on the spot. Not a raid; standard HMRC practice.
Stage 06
Notice of Enforcement
If the visit does not resolve the debt, HMRC issues a formal Notice of Enforcement. 14 days from issue to pay in full or agree a plan. HMRC does not need a court order for this.
Stage 07
Controlled Goods Agreement
If the 14 days pass, an enforcement agent returns and lists business assets on a Controlled Goods Agreement. Seven more days to pay. After that, goods are seized and sold at auction. HMRC can force entry into commercial premises.
Stage 08
Direct Recovery of Debt
For debts over £1,000, HMRC can take money directly from business bank accounts. They must leave a minimum of £5,000 across all accounts after the recovery.
Stage 09
Winding-up petition
HMRC is the most common creditor in UK business insolvencies. A statutory demand gives 21 days to pay or dispute. Miss it, and HMRC can petition the court to wind up the company. Directors face investigation for how the company traded with the debt outstanding.
None of this is inevitable. Every stage is a decision point. The earlier you act, the more options you have. A Time to Pay arrangement before day 30 is usually achievable. Borrowing to pay the bill at any point stops the clock completely. Both are better than waiting to see what HMRC does next.
Enforcement timeline and powers per HMRC published guidance and TaxAid enforcement notes. Figures for HMRC as the largest business creditor via The Gazette and Begbies Traynor insolvency data. Rate (7.75%) sourced live from the Bank of England base rate plus 4%. Funding Flow arranges finance, does not provide insolvency or tax advice.
READY WHEN YOU ARE
January CT bill coming? Plan the funding now.
Arrange ahead of the deadline. Last-minute applications get worse rates.
Get a quote →Disclaimer · The information on this page is general guidance about UK commercial finance options for limited companies and LLPs. It is not legal, tax, or financial advice and should not be relied on as such. Eligibility, rates, and terms vary by lender and are subject to credit assessment. Tax Bill Loans is a trading name of Funding Flow, a commercial finance broker; arranging finance for UK corporates is outside FCA regulatory scope. For advice specific to your situation, speak to your accountant, solicitor, or a qualified adviser.