Finance tax payments
Tax payment intermediary approved by Inland Revenue can provide finance for your provisional tax payments, freeing up your working capital and keeping your overdraft for things that really matter to your business.
Here's how it works. You have a provisional tax payment due on 7 May, but it suits your business cash flow better to pay it 6 months later.
- The tax payment intermediary will arrange payment of this provisional tax instalment on the due date on your behalf, with a one-off finance fee for an agreed term (anywhere from 3 - 12 months)
- The finance fee is deductible
- You pay the tax at the end of the finance term
- The original provisional tax instalment date (7 May) will be recorded against this transfer
- Any interest or penalties levied on your account will be reversed at this point