Patching things up with the Tax Man
July is one of the busiest periods of the year for tax-funding requests. For the majority of businesses which operate as a partnership, LLP or sole trader; a balancing tax payment will be due to HMRC by the 31st of July. For many professional firms, they have the headache of parting with often substantial cash sums to settle their liabilities, which can potentially impact cash flow or investment plans. Increasingly, firms are turning to specialist lenders such as United Trust Bank to help them spread the cost over 6 or 12 months with a professional loan at a competitive rate.
For example, earlier this year we were approached by one of our key broker partners to assist with a slightly unusual request, as we were asked to consider a loan for a firm of solicitors that had an overdue tax bill with the HMRC. Whilst this would usually be cause for concern, we were provided with a satisfactory explanation detailing the mitigating circumstances of the unpaid tax bill and as such we were happy to consider the funding request.
The financial information provided was supportive of their application and we had an open and honest conversation around the reasons for the delay in the payment being made to HMRC. Following this, we were able to progress the loan application swiftly and provide an approval the same day. We advanced the funds shortly afterwards.
Both the introducing broker and the client were very happy with the service provided by UTB which enabled them to get back on good terms with the Tax office.
Loan advance: £140k
Term: 12 months