Healthcare business loans — can you spread VAT or Corporation Tax?

Summary answer (short)

Short answer: sometimes. HMRC can agree Time to Pay arrangements for VAT or corporation tax in certain circumstances, and healthcare businesses can also use commercial finance to spread or cover tax liabilities. Options include VAT-specific loans, short-term business loans, invoice finance, overdrafts and asset finance. UK Business Loans does not lend or provide tax advice — we match your business with lenders and brokers who can quote. Get a Free Eligibility Check — Get Quote Now.

Who this page is for

This guide is for incorporated healthcare businesses in the UK (clinics, dental practices, care homes, private hospitals and medical suppliers) that need to manage VAT or Corporation Tax bills. This is general information, not tax advice — speak to your accountant or HMRC for personalised guidance.

Quick answer: Can I spread my VAT bill? Can I spread Corporation Tax?

VAT

VAT liabilities are due by HMRC dates. If you cannot pay, HMRC may agree a Time to Pay (TTP) plan for VAT in certain cases. Separately, specialist lenders and brokers can provide short-term VAT loans or working capital that cover the VAT amount so you can meet HMRC on time while repaying the finance over an agreed term.

Corporation Tax

Corporation Tax is usually payable by the statutory deadline (often nine months and one day after the end of the accounting period, or quarterly for large companies). HMRC may agree a TTP arrangement in exceptional circumstances. Where HMRC cannot or will not agree extended payment terms, businesses commonly use short-term finance (business loans, overdrafts, invoice finance) to bridge the cash shortfall.

Important: using finance does not change your tax obligations — it provides funds to pay HMRC.

HMRC options for spreading tax

HMRC’s Time to Pay service is the primary official route to spread tax liabilities without using commercial borrowing. Key points:

• You must contact HMRC early and demonstrate why you cannot pay by the due date and how you will repay.
• TTP is assessed on a case-by-case basis; HMRC asks for business bank statements, cashflow forecasts and evidence of exceptional circumstances.
• Small, short TTP arrangements may be agreed online; larger or longer plans are negotiated by phone and require supporting documentation.
• If HMRC refuses a TTP or terms are unsuitable, commercial finance can be a fallback to meet the liability and avoid enforcement action.

For HMRC guidance, contact HMRC or your accountant promptly if you think you may miss a payment.

Finance solutions that can help healthcare businesses

Below are common commercial options that help spread or cover VAT and Corporation Tax for healthcare companies. Each product has pros, cons and eligibility rules.

VAT loans / VAT-specific finance

Short-term loans designed specifically to pay an HMRC VAT bill. Typically repaid over weeks or months. Useful for one-off VAT spikes (e.g., large refurbishment VAT due on completion).

Business loans (term loans)

Unsecured or secured loans to cover tax bills. Terms vary (months to several years). Suitable when you want predictable repayments and time to spread the cost of a one-off liability.

Overdrafts & revolving credit facilities

Flexible but often higher interest than term loans. Good for smoothing short-term cashflow and matching tax payment dates.

Invoice finance / factoring

Release cash tied up in unpaid invoices (e.g., to NHS or private contracts). Particularly effective for clinics or suppliers with slow-paying customers — frees liquidity to pay HMRC on time.

Asset & equipment finance

If VAT arises because of a capital purchase (e.g., new medical equipment), asset finance can spread the cost (and VAT element) across repayments, improving cashflow.

Merchant cash advance

Advance based on future card takings. Can be quick but typically expensive; suitable where patient receipts are high and regular.

Bridging / short-term finance

Fast access to funds to meet an immediate tax bill while longer-term funding is arranged.

Costs, security and eligibility differ widely. Many lenders offer products from around £10,000 upwards — check suitability for your healthcare business. Get tailored options — Get Quote Now.

Healthcare-specific considerations

• VAT treatment: many clinical services are VAT exempt or zero-rated when supplied by registered healthcare professionals. The VAT status of equipment and ancillary services varies — get an accountant to confirm.
• Regulation & documentation: regulated providers (CQC-registered care homes, dental practices) should have compliance documents ready; lenders often ask for registrations, contracts and evidence of recurring income.
• Funding use-cases: care homes funding refurbishment (VAT on construction), dental practices buying equipment, private clinics smoothing seasonal income to pay corporation tax.

For sector-specific support see our healthcare pages — including specialist guidance on healthcare business loans and funding for clinics and care homes. Learn more about healthcare business loans at healthcare business loans.

How UK Business Loans can help

UK Business Loans is an introducer that quickly matches incorporated healthcare businesses with lenders and brokers who specialise in tax and VAT funding. What we do:

• Free, no-obligation matching to lenders/brokers who understand healthcare cashflow.
• Fast quotes so you can compare options (loans, invoice finance, VAT facilities).
• Streamlined process — a short enquiry (not an application) that won’t affect your credit score.

We do not lend or provide tax advice. Enquiries are used to match you to the best providers who contact you with quotes. Start a Free Eligibility Check — Get Quote Now.

Eligibility checklist (what lenders typically ask for)

• Limited company details: company number, trading address, contact details.
• Minimum loan sizes are often from £10,000 upwards.
• Trading history: many lenders prefer 12+ months trading and recent accounts.
• Turnover and bank statements (3–6 months).
• Recent management accounts or statutory accounts.
• Healthcare-specific docs: CQC registration, NHS or LA contracts, proof of private patient income where relevant.

Ready to check eligibility? It only takes a few minutes — Free Eligibility Check.

Typical costs, timescales and risks

• Costs: rates vary by product and risk profile — short-term tax loans and merchant cash advances can be more expensive than term loans or invoice finance. Expect arrangement fees, interest, and possible early repayment charges.
• Timescales: quote responses can arrive within hours; funding can take from same-day (in exceptional cases) to a few days or several weeks for larger facilities.
• Risks: secured loans may put business assets at risk. Ensure finance term matches your ability to repay — avoid rolling short-term debt into more expensive credit.

Always read full terms and get accountant input before borrowing.

Step-by-step: How to get started with UK Business Loans

1. Click Get Quote and complete the short enquiry (2 minutes): Get Quote Now.
2. We match your business to suitable lenders/brokers who specialise in healthcare funding.
3. Receive calls or emails with confidential, no-obligation quotes.
4. Compare offers, discuss terms with your accountant, and proceed directly with the lender you choose.

Frequently asked questions

Can HMRC force me to pay VAT or corporation tax if I take a loan?

HMRC’s statutory rights do not change. A loan provides funds to pay HMRC, but your tax liability still exists and must be met on the agreed dates unless a TTP is agreed. Using finance only helps you meet the liability; it does not alter the tax itself.

Will an enquiry affect my credit score?

No. Making an enquiry via UK Business Loans is not a formal application and will not affect your company credit score. Lenders or brokers may perform credit checks later if you apply with them directly.

Can a start-up healthcare company get VAT or tax finance?

Some lenders and specialist brokers do work with newer companies, but many products prefer at least 12 months trading and demonstrable revenue. We’ll match you to partners who consider your circumstances.

Are VAT loans different from standard business loans?

Yes — VAT loans are typically short-term and designed to cover a VAT bill specifically. Standard business loans may offer longer repayment terms and different pricing.

How quickly can I get funds?

Quotations often arrive within hours; funding depends on the product and paperwork — from same-day for small advances to several weeks for larger, secured facilities.

Is UK Business Loans a lender or financial adviser?

No. We are an introducer who connects businesses to lenders and brokers. We do not lend or give regulated tax or investment advice.

Final CTA and compliance note

Need to spread a VAT or Corporation Tax bill? Start a Free Eligibility Check now and we’ll match your healthcare business with lenders and brokers who can provide tailored quotes: Get Quote Now.

Important: UK Business Loans is an introducer and does not lend money or provide tax advice. An enquiry is not an application. Finance products carry costs and risks — always read terms carefully and consult a qualified accountant or HMRC for personalised tax guidance.

1) Can I spread my VAT bill or Corporation Tax using finance?
– Sometimes — HMRC may agree a Time to Pay plan and commercial options like VAT-specific loans, short-term business loans, invoice finance or asset finance can also provide funds to spread or cover liabilities.

2) What finance options help healthcare businesses pay VAT or Corporation Tax?
– Healthcare firms commonly use VAT loans, term business loans, overdrafts, invoice finance, asset/equipment finance or bridging loans depending on the timing and size of the liability.

3) Will submitting an enquiry to UK Business Loans affect my credit score?
– No — an enquiry through UK Business Loans is not a formal application and won’t affect your company credit score, though individual lenders may carry out checks if you apply with them.

4) How quickly can I get quotes and funding for a business loan?
– You can often receive quotes within hours and funding can range from same-day for small advances to several weeks for larger or secured facilities.

5) What loan amounts can UK Business Loans help me access?
– Our network typically places loans from around £10,000 up to multi‑million facilities, depending on your needs and lender criteria.

6) What documents and eligibility criteria do lenders usually require?
– Lenders commonly ask for company details, trading history (often 12+ months preferred), recent accounts/management accounts, 3–6 months of bank statements and any sector-specific licences or contracts (eg. CQC, NHS/LA contracts).

7) Can start-up or early-stage healthcare companies get tax or VAT finance?
– Some lenders and brokers in our network consider start-ups and early-stage businesses, but many products favour at least 12 months trading and demonstrable revenue.

8) Are the lenders you introduce regulated and trustworthy?
– Yes — UK Business Loans works with FCA-regulated brokers and reputable lenders who follow compliance standards and treat customers fairly.

9) How much will spreading a VAT or Corporation Tax bill cost and what are the risks?
– Costs vary by product and risk profile (arrangement fees, interest and possible early repayment charges) and secured finance can put business assets at risk, so always compare terms and consult your accountant.

10) Is UK Business Loans a lender or tax adviser, and what happens after I submit an enquiry?
– UK Business Loans is an introducer that does not lend or provide tax advice; after your short enquiry we match you to suitable lenders/brokers who contact you with confidential, no‑obligation quotes.