Tax Loans

Despite the knowledge that the taxes we pay benefit society in so many ways, we tend to cringe at the thought of having to pay them and sometimes it can be overwhelming.

Whether it is the discomfort of seeing our profit suffer a sudden blow or the pain of having to set aside another priority for paying the bill, taxes are seldom easy to deal with for any business, big or small.

At Performance Finance we understand that paying taxes is not easy, every individual business is just that: individual. To prevent you from suffering financially due to paying your tax requirements in full.

How can a Tax Loans From Performance Finance benefit you?

By the time the deadline to pay taxes comes around it is quite possible for you to be short of the required tax amount. Paying tax in such a situation can be stressful as it is likely to put a further strain on your finances.

We aim to relieve you of the stress that comes with paying off your tax liability by offering tax loans to our customers. When you take a loan for tax, you are given a lump sum of cash to pay your tax bill and this loan amount will be recovered from you through instalments which are spread over a scheduled time period. This way the burden of paying the taxes at once is lifted from your shoulders and you can breathe a sigh of relief as you slowly repay it over several months.

The repayment schedule is designed to suit you and your financial situation. At Performance Finance, we believe in providing prompt service to our customers and hence do not delay in giving a decision on their application and transferring over the funds to them, once the tax loan application has been accepted.

The various advantages of taking out a tax loan tax are:

  • Better cash flow
  • Easy monthly instalments for repayment
  • You can still obtain loans from banks
  • Fixed rates
  • No delays in decisions and funding
  • Personalised services and a dedicated account manager

While the 12-month facility for repayment of your tax loan is highly recommended, Performance Finance also offers a wide range of loans for tax repayment schedules ranging from 6 to 60 months and we offer anywhere from £10,000 to £10, 00, 000 to individuals and businesses.

Interested in a tax loan?Get In Touch

Tax Loans: What is Corporation Tax?

The tax levied on the profits made by a company is referred to as ‘Corporation Tax’. If you own a company and make profits from it then you must pay corporation tax irrespective of whether the profit is made in the UK or abroad. An overseas company which conducts business in the UK has to pay corporation tax on the profits it makes from its UK activities.

The current rate of corporation tax is 20%. Corporation tax has to be paid on the profits earned by

  • Investments
  • Trading profits
  • Selling assets at higher than purchase value

Tax Loans: Who has to pay Corporation Tax?

Corporation tax has to be paid on the annual profits earned through a business if it is any of the following:

  • A limited company
  • An overseas company with a branch or office in UK
  • A members club, society or association
  • Housing associations
  • Trade associations
  • Group of individuals conducting a business but not as a partnership

Whilst it’s not always an issue situation for any company, smaller businesses and associations especially, do not always possess enough funds to pay this tax promptly and expand their business at the same time. For such organisations paying corporation tax bill can put a tremendous amount of strain on their financial plan as corporation tax amount can quite often be a very large sum.

In such situations, a loan to pay the tax can be very beneficial and this is the reason why many businesses apply for a tax loan with us.

Tax Loans: How to pay corporation tax?

HMRC does not send reminders to companies to pay their corporation tax. When they receive a notification from HMRC it is usually to tell them that their tax payments are long overdue. Hence businesses are expected to keep their financial records up to date as they are required to work out, pay and report the taxes to HMRC themselves.

Expecting the corporation tax to come at a time when your business is financially secure is nothing short of an unrealistic dream. The corporation tax has to be paid to HMRC in full amount, 9 months after the business’s accounting year is over. This time is usually quite stressful for a business making it difficult for them to make ends meet.

In business, people tend to rotate their funds into other avenues and hence are not left with sufficient funds to pay the corporation tax. If you intend to use your funds for an investment which is likely to generate profits for you and have a tax bill pending, then a tax loan can be the perfect solution in your situation.

An important thing to be noted is that corporation tax has to be paid before filing the tax return.

Thinking of a Tax loan? Think of Performance Finance

Performance Finance has a rich experience of relieving many individuals and businesses of the stress of paying a tax liability in full amount. We have a dedicated team of financial specialists who are there to assist you at every turn and provide you with the right knowledge and advice. We give our clients the best that we have to offer and pride ourselves on the speed at which we process their applications and approve their tax loan applications.

We understand the difficulties that a small business encounters in its inception stage and believe that providing a relief from paying taxes at once can help a business flourish. For this purpose, we offer competitive interest rates and flexible repayment schedules to our clients which relieves them of a lot of stress.

Tax Loans: What is Income tax?

Income tax has to be paid by anybody who earns a personal living. Whether you are employed with a company or own a company yourself, income tax has to be paid by every individual. An income tax bill which puts a strain on your financial planning could also be paid off using a tax loan.

Under the following circumstances a person is required to pay income tax

  • Employed individuals earning money
  • State benefits
  • Pensions or retirement benefits
  • Profits from self-employment
  • Rental income
  • Employment benefits
  • Income from a trust

Income from savings and investments is not taxed automatically by the HMRC but has to be declared in the tax return filed by an individual.

However, income tax is not to be paid on the following

  • If the interest on savings is under the personal savings allowance
  • The first £5,000 earned in dividends from company shares
  • Income from Individual Savings Accounts (ISA) and National Savings Certificates (NSC) which are tax exempt accounts
  • Some State Benefits
  • Money won from Premium bonds or National Lottery
  • Rental income received from a lodger living with you in the same house (should be less than £7,500 per year)

Why Performance Finance for your Tax Loans?

We are the best at what we do. We are professional, we are efficient and we understand the needs of our clients. The list of our satisfied clients stands as a testimony to our expertise in our craft. We do not decide how successful we are based on the number of clients we acquire, but on how satisfied our clients are with the service being offered to them. Customer satisfaction is our priority and this is what sets us apart from the rest.

To contact us for your tax loans queries, simply call us on 01536 529696 and we'll be happy to help you.

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