Spreading the load of a corporation tax bill
At United Trust Bank, we pride ourselves on our flexibility and versatility which gives us the ability to provide funding for all manner of scenarios. One type of liability we frequently see requests for is to assist with companies’ corporation tax bills. Whilst this typically just applies to Limited companies, corporation tax is also payable by most unincorporated associations (e.g. clubs and cooperatives) as well as foreign companies with a UK branch or office.
As such, it is quite common that a business finds itself facing a substantial shortage of cash when these fall due.
We were approached in May by a medium-sized accountancy firm that had an impending
corporation tax bill due: As this amounted to approximately £75k, they were very keen to avoid taking all of that cash out of the business in one go, but rather preferred to spread the cost over the course of the following 12 months.
Our Professions funding team received the request via one of our select introducers and were
very quickly able to provide a decision. Given the business was financially sound, the Partners were providing personal security and the rationale for the request was entirely reasonable – we were able to provide an approval within just a few hours.
Loan Amount: £75,000