Big increase in businesses taking out funding to pay their tax bills
Premium Credit, a leading provider of finance, has seen strong growth in the volume of funding it has delivered 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 2022, the total amount of money it lent to help fund clients’ VAT bills was 68% higher than in 2021. The corresponding increase for funding non-VAT tax bills is 53%.
The amount of funding provided through Premium Credit’s Tax and VAT funding proposition for VAT tax bills in Q1 2023 is 11% higher than for the same period last year. For the funding of non-VAT tax bills, it is 27% more.
The number of clients using Premium Credit’s Tax and VAT funding proposition increased by 53% between 2022 and 2021. Last year, the average size of loan to help pay VAT tax bills was £116,200, and for non-VAT tax bills it was £105,100.
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. We are one of the leading funders of Tax and VAT finance in the UK, offering flexible VAT, corporation tax and self-assessment solutions allowing businesses and business owners to spread the cost of their liabilities for up to a year.”