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  • Views from the flipside

    Avoid overdue payments with a short term VAT loan

    Tell me more

Views from the flipside

Latest research shows that UK businesses owe almost £2.6 billion to HMRC in overdue VAT payments, up from £2.55 billion in 2014. This figure has remained consistent in recent years, despite the improving economic climate.

Our Managing Director, Peter Alderson explains that one of the biggest factors is likely to be the fact that businesses are waiting longer to receive payment from suppliers – currently standing at around 72 days. Should a client pay late, the business is still expected to pay VAT on those invoices, despite having less cash available to do so.

More companies are also taking advantage of the economic recovery and increasing capacity via investment in staff, equipment and infrastructure, and as a result, payment deadlines could easily be overlooked.

The present 20% VAT rate may also be having an effect, as it now represents a significantly larger tax consideration than pre-2011.

Peter says that essential expenditure such as tax or vat, should not have to compete with businesses’ plans for growth, or have any significant impact on cashflow. Careful planning can ensure investment to expand and demands from the Revenue can be managed side-by-side.

LDF have seen an increase in the number of businesses choosing to finance their VAT payments. Customers can choose whether they wish for payments to be made directly to HMRC on their behalf, or to the clients account, but ultimately freeing up capital for other business requirements.

For more information on how we can help your business manage tax bills, please make an enquiry or call us on 01244 527300 .

Why choose LDF?

  • No red tape, so you can receive funds in as little as 24 hours
  • We accept 4 out of every 5 applications
  • Apply quickly and easily with E-sign loan documents
  • You’ll always speak to the same person
  • Free up cash flow for other areas of your business
  • Tailored finance agreements to suit your specific needs
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Views from the flipside

What our customers say

We could not have been happier. Banks as usual were a nightmare - they took over six weeks to eventually refuse for vague reasons unexplained. LDF were professional, helpful, friendly, and best of all, fast.

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