What Is An Income Tax Loan?

You can raise finance as a way to cover your income tax liabilities. Rather than paying your income tax as a lump sum, as you would usually, you can borrow the outstanding amount to settle your invoice. A lender will cover your income tax liability (often paying HMRC directly), and you will repay your lender over a period of months. Because you will repay your lender a fixed amount, you will have an overview of what you will need to pay each month, and you won’t have the burden of having to settle your income tax as a lump sum. Given your income tax liability can be significant, this is often advantageous, particularly if you want to retain liquidity for other projects or investments.

If you cannot cover your income tax bill, HMRC will charge you penalties and interest, which will accumulate until you have paid off your income tax bill. An income tax loan can help avoid these charges if you cannot get capital together by your income tax payment deadline.

 An income tax loan is a type of short-term finance which usually has a term of twelve months, although it may be less. It is a particularly advantageous financing option for individuals with significant income tax liabilities. 

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Reimbursement Of Income Tax

You can also raise income tax finance on a reimbursement basis. Here, you can apply for a loan up to 28 days after you have paid your income tax bill. Here, your lender will pay loan capital to you directly, and you will repay the lender in instalments. This is a particularly useful way to raise finance if you want to retain liquidity for other projects. 

How Does An Income Tax Loan Work?

The first step is always to get in touch with Enness. Your broker will discuss your requirements and will look to understand more about your situation and how much you need to borrow.

Your broker will then approach lenders on your behalf to secure initial offers. Your broker will collect offers (two or more wherever possible) so that you can compare rates and terms. Enness will also talk you through each offer and explain any differences and potential drawbacks and advantages of each, so you can make an informed decision about what the best offer is for you.

When you are ready, Enness will reach out to your chosen lender and communicate that you would like to go ahead with the deal. Your broker will help you with your application and work alongside you to complete the deal as quickly as possible.

You will repay your lender over a fixed period – usually twelve months, but Enness can negotiate other terms if you wish.

Accessing Income Tax Loans

Enness can broker income tax loans exceptionally quickly – sometimes in as little as 24 hours. Many lenders operate in the market, but not all of these players can finance large income tax loans of £100,00 or more, instead preferring to offer smaller loans. An expert in high-value finance, Enness has access to lenders that provide significant income tax loans. 

If you have a significant income tax invoice, you will likely need access to niche lenders. You will need a lender that can understand your financial situation – this will be particularly important if you have global income, generate income through business ownership, or have unusual revenue streams. If you want a high-value income tax loan, how Enness presents your case to lenders is invaluable. Your broker will be able to show your case in the most beneficial light for lenders and make them aware of the strengths of your case. 

You will be able to access income tax loans quickly. Especially if your tax liability is due in the short term, you will want a broker to help you complete the deal as soon as possible, rather than just negotiating offers. Enness has arranged significant income tax loans in just 24 hours.


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Enness is a high-value finance broker with a track record of arranging income tax loans for clients quickly. Contact Enness for a no-obligation chat about your requirements and this specialist type of finance.

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