2 min read
Tax arrears in context
Many trading companies fall behind on VAT or PAYE at some point. A lender's worry is not the arrears themselves but whether they signal a business losing control of its cash. A managed position changes the picture entirely.
The role of Time to Pay
A Time to Pay arrangement with HMRC, kept to, shows the company is dealing with the debt responsibly. Borrowing to smooth cash flow around a tax bill can be sensible. Arrears left to escalate into enforcement are the real red flag.
Applying
Disclose any arrangement and show recent statements. Then apply online. Credicorp lends with no personal guarantee.
Frequently asked questions
Does a Time to Pay arrangement count against me?
Generally the opposite — it shows you are managing the debt with HMRC rather than ignoring it, which reassures a lender.
Can I use a loan to clear HMRC arrears?
Yes, financing a tax bill is a common, legitimate use — provided the repayments are affordable. It can be cheaper and calmer than enforcement.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.