Analysis reveals more companies and people are using credit to spread the cost of their tax bills
Premium Credit, a leading provider of finance, has seen strong growth in the volume of funding and number of customers it supports through its Tax and VAT funding proposition, which allows companies and business owners to spread the cost of their VAT, corporation tax and self-assessment tax payments.
In 2023, the total amount of money it lent to help fund clients’ VAT bills was nearly double the total amount lent in 2021 and 98% higher. Over the same period funding for non-VAT tax bills was 83% higher underlining the strong growth across the business and growing awareness of the convenience of being able to spread the cost of tax bills among SMEs.
The amount of funding provided through Premium Credit’s Tax and VAT funding proposition for VAT tax bills in Q1 2024 is 16% higher than for the same period last year. For the funding of non-VAT tax bills, it is 25% more.
The number of clients using Premium Credit’s Tax and VAT funding proposition increased by 58% between 2022 and 2023 and by 51% between 2021 and 2022. Last year, the average size of loan to help pay VAT tax bills was £101,352, and for non-VAT tax bills it was £73,625.
Jennie Hill, chief commercial officer, Premium Credit (Specialist Lending) said: “The Tax and VAT marketplace is currently worth around £190bn annually, and we estimate that between £3bn and £5bn is financed each year.
