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VAT LOANS

Pay your tax bills on time with VAT Finance

Take control of your cash flow and hit HMRC’s deadlines without draining your reserves.

  • Receive between £10,000-£500,000 to cover your VAT bills

  • Applications are fast-tracked, ensuring your payment reaches HMRC before the deadline

  • Convert large VAT bills into manageable monthly payments

 Apply now

Already a Tide member? You can apply for a business loan and other finance directly within the Tide app.

Tide has joined forces with Funding Options, becoming the largest credit marketplace in the UK. 

Providing over £1 billion in funding to more than 17,000 UK businesses, we’re on a mission to help business owners grow with confidence. 

How do VAT Loans work?

VAT loans are designed to be quick and efficient, helping you settle your tax bill before the deadline.

They can be applied for quarterly, depending on your VAT bills. In some cases, businesses may need to use their assets as security.

1. Apply & approve

Calculate the amount you need based on your VAT bill and apply for the loan amount. We’ll aim to make a decision in 2-3 days.

2. We pay HMRC

Once you’ve been approved, we’ll transfer the full VAT loan amount to HMRC on your behalf, guaranteeing on-time compliance.

3. Repayments

You’ll repay the full loan amount, plus interest, over a series of smaller, fixed and predictable monthly payments (typically over 3 months).

Apply now

Why might you need a VAT Loan?

Spread the cost

Turn your large, immediate quarterly VAT bills into a set of smaller, more predictable monthly payments. Spread the financial impact to accommodate your cash flow.

Preserve capital

Avoid letting a large VAT bill deplete your working capital. Keep reserves available for essential payroll, day-to-day business operations and emergencies.

Manage seasonality

Use the loan to cover your VAT bill during your quiet season, when your cash reserves are typically low. VAT finance is ideal for businesses with variable revenue.

Fund growth

Allocate your business savings to strategic investments and growth opportunities - like bulk stock purchases or marketing campaigns - whilst your tax bills are covered.

Bridge purchases

Finance the upfront VAT on large capital assets (like an office building or factory) whilst you wait for your eventual tax reclaim - which can take weeks or months.

Avoid penalties

Guarantee your mandatory VAT payment will meet the deadline. Avoid costly HMRC penalties, late fees and stressful interest charges on overdue tax bills.

Are you eligible for a VAT Loan?

Who’s eligible for Tide’s VAT Loans?

To be eligible for any type of business loan or credit from Tide, you must:

  • Be over 18

  • Be a UK resident

  • Have a UK-based business

  • Have a UK bank account

What do you need to apply for a VAT Loan?

  • Your HMRC VAT bill

  • Basic information about your business, such as how old it is, and your annual revenue 

  • Information on directors and shareholders

  • Bank statements covering the past year

Depending on your business and the finance you need, the criteria may differ.

Apply now

We've already helped businesses secure more than £1 billion

We’ve provided funding to more than 17,000 businesses across the UK, as part of our mission to help business owners grow with confidence.

How to apply for a VAT Loan

As a finance broker with access to over 80 lenders, Tide will find a lender tailored to your business - and the process is simple.

  1. Tell us how much you need to borrow We’ll ask you how much you need, what it’s for, and for some basic information about your business.

  2. Compare loans without impacting your credit score We’ll connect you to the largest network of lenders in the UK, so you can view affordable credit options that suit the unique needs of your business.

  3. Apply in minutes Once approved, you’ll receive a quote from a lender you matched with.

  4. Get a decision and money is released Depending on the type of finance you’ve applied for, credit could be available in around 24 hours.

Apply now

Access a range of business funding options from our trusted partners

Aaron MoOng Ong Buns

With the help of Tide and their team of business finance experts, I was able to navigate the complexities of business finance, and secure the necessary funds to grow my business.

What are VAT Loans?

VAT loans are a form of short-term finance, designed to help cover VAT (Value Added Tax) payments to HMRC.

If you’re unable to commit a large portion of your working capital in one go, a VAT loan will help you settle the bill on time.

Essentially, VAT finance allows you to convert any large tax payments into a series of smaller, more manageable payments, which you can spread over 3 months. However, you may also be able to take out a more traditional business loan over 12 months for the purpose of paying off a VAT bill.

Are there different types of VAT Loans?

There are two main options for VAT finance: standard VAT loans and VAT bridging loans. Your choice will depend on the nature and timing of your tax bill.

Standard VAT loans

  • Typically used for regular, recurring quarterly VAT payments

  • Designed to spread a large, mandatory cash flow expense over a shorter, manageable period

  • This is the most common type and covers the vast majority of VAT requirements - ideal when the payment is urgent or when spreading the cost is the priority

VAT bridging loans

  • Typically used for VAT due on one-off, large purchases, like commercial property

  • Designed to bridge the cash flow gap between paying the VAT upfront (a requirement for many commercial property deals) and the time it takes to receive the VAT reclaim refund from HMRC

  • This type of VAT loan is repaid with the refund money

What are the benefits of VAT Finance?

Fast access

VAT loans are designed for speed because they address an immediate deadline. This means applications are often fast-tracked.

Fixed repayment terms

Interest rates and monthly repayments are usually fixed for the duration of the loan, making it easier to plan your finances.

Improved supplier relations

Free up your working capital so you can pay your suppliers promptly and maintain stronger relationships.

Simple, specific purpose

VAT loans are strictly designed for tax payments. This often results in a less complex application process.

Protect existing credit

Using a separate loan stops you from needing to use your existing credit facilities, keeping those lines of credit open.

Apply now

Alternatives to Business VAT Loans

Use your business savings to cover your tax bills and apply for other business loans to invest in growth and day-to-day operations.

Business Credit Cards

Manage cash flow, earn rewards and build your business credit score.

Explore Credit Cards

Revolving Credit Facilities (RCF)

Draw, repay and re-draw capital repeatedly over the agreed term.

Explore RCF

Asset Based Loans

Turn your assets into cash whilst maintaining ownership.

Explore ABLs

Invoice Finance

Unlock cash from unpaid invoices, improving immediate cash flow.

 Explore Invoice Finance

How to track your business credit score

Are you wanting to improve your business credit score?

Credit Score Insights is a simple and affordable way to help you understand, track and take action to help you boost your business credit score.

 Track your credit score

Learn more about financing your business

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Explore more funding guides

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