Capital purchase quarters
You've just spent £500k on plant, machinery, or stock. The input VAT recovery is significant. Waiting 30 days to get the cash back is painful when you've already paid the supplier.
VAT RECLAIM FUNDING
Get your VAT refund when you need it, not in 30 days
When HMRC owes you a VAT repayment, you usually wait around 30 days for the cash. We can advance the funds shortly after HMRC verification, so the money lands when you need it.
How it works
1
Submit your VAT return as normal
You file your quarterly VAT return through your usual MTD-compatible software. If your input VAT exceeds output VAT, HMRC owes you a repayment.
2
We verify the refund amount
HMRC runs automated checks on your return, usually within 3 working days. Around 10% of returns get a deeper review, which can extend timelines.
3
We advance the funds
Once HMRC has verified the refund amount, we transfer the funds to your business bank account quickly, minus our fee.
4
HMRC pays us directly
HMRC sends the VAT repayment to us instead of you, settling the advance. You don't have to do anything else.
When VAT Reclaim funding helps
Zero-rated and export businesses
You sell zero-rated goods or export. You pay input VAT but rarely collect output VAT. Repayment quarters are a normal part of your cycle, and the timing matters.
Working capital pressure
Your business is fundamentally fine, but a 30-day wait on a £40k VAT refund causes a payroll, supplier, or rent issue you'd rather avoid.
Calculator
Model your VAT refund
VAT REFUND ADVANCE
VAT refund advance calculator
Model what you'd receive today against a confirmed VAT refund.
£25,000
£5k£200k
Tiered fee: 3.5% on refunds up to £25k, 2.5% from £25k to £100k, around 2% above £100k. The advance is the refund minus the fee.
Advance available
£24,375
Settled when HMRC pays
- Refund amount£25,000
- Provider fee (2.5%)£625
Get a quote →
Indicative only. Final terms depend on the refund being verified by HMRC and your trading history. Larger or recurring refunds may price tighter.
What it costs
Typical fees
VAT Reclaim funding is priced as a percentage of the refund amount, not as an interest rate. There is no monthly cost, no setup fee, and no commitment.
| Refund size | Typical fee |
|---|---|
| £5,000 to £25,000 | Around 3% to 4% of the refund |
| £25,000 to £100,000 | Around 2% to 3% of the refund |
| £100,000+ | Negotiated based on volume and frequency |
Fees vary by lender, your trading history, and any HMRC compliance flags on your account. We will give you the exact figure before you commit.
Worked example
£40,000 VAT refund, advanced shortly after HMRC verification.
- Refund amount: £40,000
- Fee at 2.5%: £1,000
- Cash to your account: £39,000
- HMRC pays us the £40,000 in their normal timeframe (around 30 days)
- Cost to you to access £39k three to four weeks earlier: £1,000
What we look for
About your business
- VAT registered for at least 12 months
- UK limited company, LLP, or qualifying partnership
- MTD-compatible accounting software
- Up-to-date VAT return filing history (no current penalty points or unfiled returns)
- No active HMRC compliance check on your VAT account
About the refund
- Refund amount £5,000 minimum
- Refund clearly substantiated by your VAT return data
- No prior history of HMRC reversing or clawing back refunds
- Bank account in the company name where HMRC currently sends repayments
Realistic timelines
1
Day 0
Return submission
You submit your VAT return showing a refund. We connect to your HMRC account through your accounting software (read-only).
2
Day 1 to 3
HMRC verification
HMRC's automated checks run. Around 85% of refunds clear in 3 working days. The rest face deeper review that can take 1 to 4 weeks.
3
Day 1 to 4
Cash to your account
As soon as HMRC verifies, we transfer the funds (minus fee) to your business account.
If HMRC opens a deeper compliance check on your refund, the advance is delayed until the check resolves. We don't advance funds against contested refunds. If your return is rejected, no fee is charged.
VAT Reclaim vs VAT Loan, which one?
When you owe HMRC
VAT Loan
- You owe a VAT bill
- You need cash to pay HMRC on time
- 3 to 12 month term, monthly repayments
- Typical 1.3% per month + 1% setup
- From £10k to £1m
When HMRC owes you
VAT Reclaim Funding
- HMRC owes you a refund
- You want the cash now, not in 30 days
- One-off advance, settled by HMRC paying us directly
- Typical 2% to 4% fee on the refund amount
- From £5,000 minimum
Common questions
Do I have to give you my HMRC login details?
No. We connect through your existing MTD-compatible accounting software using a secure read-only link. We don't see your HMRC password and we can't submit anything on your behalf.
What happens to my normal HMRC repayment?
When you sign up, HMRC's repayment routing is updated so the refund goes to our account instead of yours. We've already paid you, minus our fee, so this just settles our advance. You can switch back to direct HMRC repayments at any time if you stop using the service.
What if HMRC reduces or rejects the refund?
If HMRC adjusts the refund downward after we've advanced funds, you owe us the difference. If the refund is rejected entirely, you owe us the full amount we advanced. This is why we underwrite each return before advancing, to protect both of us. If we don't advance, no fee is payable.
Is this the same as factoring or invoice finance?
No. Factoring advances against unpaid customer invoices. VAT Reclaim funding advances against an HMRC repayment that has been calculated on a submitted VAT return. The risk profile and structure are different.
Can I use this for one quarter only?
Yes. There is no commitment, no minimum number of returns, no monthly fee. Use it for one quarter, three quarters, or every quarter. The fee structure is per-refund.
Does this affect my credit file?
No. VAT Reclaim funding is a service arrangement secured against the HMRC repayment, not a loan to the business. It does not appear on the company credit file.
What if I'm under a Time to Pay arrangement on a different tax?
VAT Reclaim funding can usually still work even if you have an active Time to Pay (TTP) arrangement on Corporation Tax, PAYE, or another quarter's VAT, provided the current refund return is clean and HMRC isn't using the refund to offset your other arrears. We'll check this before advancing.
Are you the lender?
Tax Bill Loans is part of Funding Flow, a commercial finance broker. We arrange VAT Reclaim funding through specialist providers in the market. The advance is from the chosen provider, not from us. We are not FCA regulated; commercial finance to limited companies and LLPs is outside FCA scope.
Submit a VAT return showing a refund?
Tell us the refund amount and your typical timeline. We will come back to you with a fee quote.
Get a quote →VAT repayment timelines per HMRC. Standard repayment processing is around 30 days from return submission, varying by HMRC verification. Around 10% of returns face deeper compliance review. VAT Reclaim funding fees are indicative and vary by lender, refund size, and trading history. Tax Bill Loans is a trading style of Funding Flow, a commercial finance broker not authorised or regulated by the Financial Conduct Authority. We arrange finance solely for UK limited companies and LLPs.