UK VAT Loan - VAT Lending
Grappling with the burdens of VAT is an inevitable and unavoidable bi-product of running a business in this day and age.
Applying for a VAT loan can serve as an excellent way of mitigating these costs
UK VAT Loan - VAT Lending
Managing the Costs
Companies which deal in goods and services are particularly susceptible to VAT, and so to pre-empt these costs, manage the expense by introducing VAT tax into the prices of your products. The current rate as of 2019 is 20% for goods and services sold to customers and other businesses.
The tax on VAT kicks in above the £85,000 mark but given that this will be a continual cost after you reach this threshold its wise to act in good time. Fortunately, even in the event that you find yourself faced with growing costs, applying for a UK VAT loan can help you keep costs under control.
The argument in Favour of a VAT Loan
The various companies who specialise in VAT lending have a clear understanding of the pressures faced by businesses. Using a VAT loan in the UK, provided by one of these VAT lending companies, carries various hidden advantages, such as:
– The prevention of lost revenue following an unexpected VAT bill
– Coping with the difficulties posed by unusual payroll periods
– Promote company cash flow, thereby maintain periods of growth and expansion
– Mitigate the threat of late payment fines
Not only this, but VAT loans can cover a variety of situations. A VAT bridging loan, for example, allows an enterprise to cover the additional VAT related costs of a commercial property purchase.
Applying for a UK VAT loan or a VAT bridging loan will, in a word, allow you to cope with the unexpected while maintaining the essential affairs of your business.
VAT lending works under a basic premise. According to UK law, VAT returns must be submitted every three months. With a VAT loan, you have the option of paying this tri-monthly tax over the top of your loan. Alternatively, you can spread your VAT loan out to cover the whole year’s costs. Either way, with a VAT loan, you can rest easy in the assurance your business won’t have to worry about any unexpected tax costs in the future.
Even if after implementing and carefully managing a VAT loan plan, its possible to still find yourself in a difficult situation with regards to keeping up with payments. In these instances, HMRC is more than willing to help new businesses with their bills, whether that’s by increasing the timeframe in which they need to make payments or working to address the waxing and waning of a business’s cash flow periods. And while a VAT loan can help with this, bear in mind the loan will need to be repaid as well, so a proactive approach to saving and maintaining cash flow is a must.