Short-term finance for a Corporation Tax or PAYE bill

Corporation Tax and PAYE/NIC bills are known, dated liabilities — but the timing rarely suits your cashflow perfectly. A one-off short-term loan from Credit Corp lets your company pay HMRC on time and repay over the following weeks of trading.

Why a tax bill can catch a healthy company out

Corporation Tax falls due 9 months and 1 day after your accounting period ends; PAYE and NIC are due monthly. Both are predictable in amount and date, which makes them easier to plan for than most bills — but a bill landing in the same week as payroll, rent or a supplier payment is still a genuine squeeze, even for a profitable company.

Corporation Tax is a lump sum due long after the profit that generated it was earned and often spent
PAYE and NIC fall due monthly regardless of your own customers' payment timing
HMRC late-payment penalties and interest apply from the deadline, and a poor payment record can affect future dealings with them
Paying a company tax bill on a personal card or overdraft mixes personal and business liability unnecessarily

How bridging a tax bill works

Borrow the bill amountApply for a one-off short-term business loan sized to the Corporation Tax or PAYE/NIC you owe. Lending is to the company, so there is no personal guarantee to sign.
Pay HMRC on timeSettle the bill by its deadline and avoid the late-payment penalty, interest, and any dent to your compliance record.
Repay from the next weeks of tradingClear the loan over a fixed short term as your normal trading income comes in.
Settle early if you canInterest is simple and non-compounding, so paying ahead of schedule reduces the total cost, with no early-settlement penalty.

What a tax bill bridge could cost

Say your company owes £500 in Corporation Tax or PAYE/NIC and clears it over 63 days as the next quarter trades. With 0.25% per day simple interest and a £5 one-off fee, here is the whole cost.

Amount bridged: £500.00
Term: 63 days
One-off establishment fee: £5
Interest (simple, on principal): £78.75
Total to repay: £583.75
Roughly per week: £64.86 over 9 payments

Illustration only, not a quote. Use the calculator to price your own amount and term.

Short-term borrowing is expensive relative to bank lending — only borrow when the cost is less than the gap it closes. Total cost is capped at 100% of the amount borrowed, so you will never repay more than double. Lending is to the company; there is no personal guarantee.

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Talk to HMRC first

Short-term finance is not the only route, and it is not always the cheapest. Before you borrow, call HMRC's Business Payment Support Service and ask about a Time to Pay arrangement — a formal, phased plan for businesses with a genuine short-term cashflow difficulty. Ring before the deadline, not after.

Phone HMRC before the payment deadline — a missed deadline hardens their position
Time to Pay is usually the cheapest option when HMRC agrees to it; compare it against any loan cost
If HMRC declines, or you have used Time to Pay recently, short-term finance is the next real option
Keep filing on time regardless — a clean compliance record is worth protecting

Who can apply

UK limited company or LLP (we lend to the body corporate — not to sole traders or individuals).
At least 6 months trading.
A current UK business bank account.
A director identity check (you act as the company's authorised representative, not as a personal borrower).
No personal guarantee required — the obligation sits with the company.

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Tax bill finance — questions

Can a limited company get short-term finance for Corporation Tax or PAYE?

Yes. A Credit Corp short-term business loan can bridge a Corporation Tax, PAYE or NIC bill for a UK limited company or LLP, repaid over a fixed short term.

Is this regulated consumer credit?

No. Credit Corp lends only to UK limited companies and LLPs under the body-corporate exemption in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001. There is no personal guarantee — the obligation is the company's.

What does it cost to bridge a tax bill?

Interest is 0.25% per day on the principal (simple, not compounding), plus a £5 one-off fee, capped at 100% of the amount borrowed. See the worked example above, or use the calculator for your own figure.

Should I use HMRC's Time to Pay instead?

Often, yes, if HMRC will agree it — it is usually cheaper than borrowing. Short-term finance is the right choice when HMRC will not engage, when you have used Time to Pay recently, or when paying in full on time protects your filing record.

Bridge your tax bill

See exactly what a Credit Corp business loan would cost against your Corporation Tax or PAYE bill, then apply when it fits. Most decisions come back the same working day.

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Credit Corp lends to UK limited companies and LLPs under the body-corporate exemption (Articles 60B and 60L of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001). This is not consumer lending. The Financial Ombudsman Service and Financial Services Compensation Scheme do not apply. Full details: regulatory status and responsible lending policy.