Can I get tax finance if HMRC has already issued a winding up petition?

Yes. A winding up petition is time-critical but does not prevent a finance facility from being arranged. The key is speed: once a petition is advertised in the London Gazette, bank accounts may be frozen and the situation becomes significantly harder to resolve. Contact us immediately on issue of any petition. We have arranged secured facilities that settled petitions within two weeks of first enquiry.

Should I try a Time to Pay arrangement with HMRC first?

Yes, if HMRC will agree to one. A Time to Pay (TTP) arrangement lets you pay the liability in instalments directly to HMRC, typically over 6 to 12 months, without any finance cost. However, HMRC rejects TTP proposals that it considers unaffordable or where the business has a poor compliance history. If HMRC has declined a TTP or the situation has escalated to enforcement, tax finance is the appropriate route.

How is the money paid to HMRC?

On completion of the finance facility, funds are transferred directly to HMRC to clear the outstanding liability. The business never handles the funds. This ensures HMRC receives immediate payment and enforcement action is stopped without any risk of funds being used for other purposes.

What if my business has no property to use as security?

Unsecured tax finance is available based on demonstrated business trading performance. Lenders assess 6 to 12 months of business bank statements and will lend a multiple of average monthly revenue. Facilities can draw within 24 to 72 hours. For larger liabilities where unsecured options are insufficient, the director's personal property (including residential property in some cases) can be considered as security.

Does HMRC tax finance affect my credit record?

The finance facility itself will appear on credit records if the lender reports to credit reference agencies. However, the alternative (HMRC enforcement, winding up proceedings or a County Court Judgement) would cause far greater credit damage. Settling an HMRC liability through finance and repaying it on schedule is materially better for a business's credit profile than allowing HMRC enforcement to proceed.

HMRC Tax Finance

Settle Corporation Tax, VAT, PAYE and SDLT liabilities before HMRC escalates. Secured facilities against property draw within 2 to 3 weeks. Unsecured options available for businesses with strong trading history. Winding up petition resolution a speciality.

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No upfront fees · Business enquiries only · Min. £25,000

What is HMRC Tax Finance?

HMRC tax finance is a short-term facility specifically designed to settle outstanding HMRC liabilities. It covers Corporation Tax, VAT arrears, PAYE/NIC obligations, SDLT and any other tax debt owed to HM Revenue and Customs. The facility repays HMRC directly, removing the immediate threat of enforcement action while the business arranges longer-term repayment from trading cash flow or asset proceeds. Both secured (against UK property) and unsecured (against trading performance) options are available, depending on the business circumstances and the urgency of the situation.

Corporation Tax: annual liability or HMRC demand following an investigation
VAT arrears: overdue quarterly returns or a VAT assessment
PAYE and NIC: employer obligations for employees and directors
SDLT: property purchase tax obligations due on completion
Tax investigation settlements: agreed liabilities following HMRC enquiry
Winding up petition resolution: settling the underlying debt to stop court proceedings

How Does HMRC Tax Finance Work?

Assess the liability

Confirm the exact amount owed to HMRC, the type of tax and the current enforcement stage. A copy of the HMRC demand, any Time to Pay correspondence and the latest correspondence from HMRC is required. If a winding up petition has been issued, the date of the court hearing determines the urgency and therefore the product type.

Choose secured or unsecured

Secured tax finance is raised against UK property equity and can draw within 2 to 3 weeks. It is available regardless of trading performance or director credit history, provided sufficient equity exists. Unsecured tax finance is assessed on 6 to 12 months of business bank statements and trading accounts. It is faster to arrange (24 to 72 hours) but requires a demonstrable trading base.

Funds paid directly to HMRC

On completion, the facility proceeds are paid directly to HMRC to clear the outstanding liability. This immediately removes the enforcement risk and any winding up petition threat. The business then repays the finance facility from trading cash flow, asset proceeds or a refinance.

Repayment structured to the business

Secured tax facilities typically run for 3 to 18 months, with interest retained or serviced monthly. Unsecured facilities offer structured monthly repayment over 6 to 36 months, aligned to demonstrated cash flow capacity.

How is HMRC Tax Finance Secured?

Secured HMRC tax finance is protected by a first or second legal charge registered at HM Land Registry over a UK property. The lender focuses on the equity available in the property and the credibility of the exit rather than the underlying tax problem. Unsecured facilities have no property security: the lender assesses business bank statements, trading accounts and director guarantees.

Exit Strategy

All lenders require a credible exit strategy before funds are released. Common exit routes include:

Repayment from ongoing business trading cash flow over the facility term
Sale of a business or personal asset generating proceeds to repay the facility
Refinance of the tax facility to a longer-term commercial mortgage or secured loan
Business sale proceeds clearing the facility on completion
Investment or capital injection into the business repaying the facility

Is HMRC Tax Finance a Good Idea?

Advantages

Removes the immediate risk of winding up, enforcement or asset seizure
Protects business relationships and credit record from HMRC enforcement
Preserves the ability to trade while the underlying tax issue is resolved
Secured options available regardless of trading performance
Unsecured options drawn in as little as 24 to 72 hours
Director adverse credit considered on the secured route
Interest cost is almost always less than HMRC penalty interest and enforcement costs

Considerations

Interest cost is additional to the underlying tax liability
Secured facilities put property at risk if the facility is not repaid
Unsecured facilities require strong and demonstrable trading history
Does not resolve the underlying cause of the tax problem
A Time to Pay arrangement with HMRC directly may be preferable if available

How to Secure HMRC Tax Finance

Gather HMRC correspondence

Collect all HMRC demands, Time to Pay refusal letters, winding up petition notices and any correspondence from HMRC enforcement. The more complete the picture, the faster a lender can assess and respond.

Confirm the security or trading position

For secured finance: identify which property will be used and confirm the current estimated value and any outstanding mortgage balance. For unsecured: gather 6 to 12 months of business bank statements and the most recent accounts.

Submit enquiry immediately

HMRC tax situations are time-critical. Winding up petitions are advertised in the London Gazette shortly after issue, which can freeze bank accounts and trigger supplier concern. Contact us as soon as the liability is known. We can provide indicative terms within hours.

How Much Can I Borrow?

The available amount depends on the route taken and the specific circumstances.

Secured (property-backed): up to 75% LTV on residential investment property; up to 65% LTV on commercial property
Unsecured: typically £10,000 to £500,000 based on demonstrable monthly turnover
Minimum facility: £10,000
No maximum on secured facilities, subject to available equity
Emergency same-day wire available in certain winding up petition scenarios

What Are the Costs?

Secured: arrangement fee1.5 to 2% of the loan amount

Secured: monthly interest0.65 to 1.5% per month depending on LTV, charge position and credit profile

Secured: RICS valuationLender-instructed; borrower cost. Typically £400 to £1,500

Unsecured: origination fee2 to 5% of the facility amount

Unsecured: monthly rateTypically 2 to 6% per month (factor rate equivalent)

Legal fees (secured only)Borrower's own solicitor plus lender legal contribution

Broker feeNone charged by Archangel

How Quickly Can I Get a Loan?

Unsecured tax finance can draw within 24 to 72 hours where trading evidence is strong. Secured facilities against property typically draw within 2 to 3 weeks. In winding up petition scenarios where a court hearing is imminent, we can escalate and in some cases arrange same-day or next-day payment directly to HMRC.

Eligibility Criteria & How to Apply

UK limited company, LLP, partnership or sole trader
Outstanding HMRC liability confirmed in writing
Secured route: UK property with available equity; adverse credit directors accepted
Unsecured route: minimum 6 months trading history; 3 to 6 months business bank statements available
Personal guarantees required from all directors or principals
Business must be solvent or capable of being stabilised by repayment of the tax liability
Active winding up petitions considered on an urgent basis

9 Example Uses of HMRC Tax Finance

Corporation Tax demand

A profitable business faces a £180,000 Corporation Tax demand it cannot meet from cash flow due to a slow-paying major client. A secured facility against the director's investment property settles the HMRC bill within 12 days.

VAT arrears over three quarters

A hospitality business accumulated £95,000 in VAT arrears during a trading downturn. HMRC rejected a Time to Pay proposal. An unsecured tax finance facility clears the arrears and establishes a 12-month repayment plan.

Winding up petition

A £210,000 unpaid PAYE liability triggered a winding up petition from HMRC. The court hearing was 18 days away. A secured facility against a property with £400,000 equity was arranged in 14 days, the petition was settled and the proceedings withdrawn.

HMRC investigation settlement

An HMRC investigation into a professional services firm concluded with an agreed liability of £320,000 including penalties and interest. A secured tax facility settled the liability in full, closing the investigation.

SDLT on property completion

A property investor faced an immediate £140,000 SDLT liability on a commercial acquisition. A short-term secured facility against an existing investment property settled the SDLT, with the bridge repaid on the subsequent refinance.

PAYE crisis for a growing employer

A business doubled its headcount rapidly and fell behind on PAYE obligations. An unsecured facility of £60,000 cleared the arrears and provided breathing space to restructure the payroll process.

Director with CCJs settling tax debt

A director with two satisfied CCJs had equity in a buy-to-let property. The CCJs prevented a high-street bank facility. A secured tax finance lender focused on the property equity and cleared a £130,000 HMRC liability.

Tax bill on profitable year

A construction business had an unusually profitable year and faced a £250,000 Corporation Tax bill larger than anticipated. Rather than disrupt working capital, a secured facility against commercial premises covered the liability.

Avoiding liquidation

A retail business faced a statutory demand that would trigger compulsory liquidation if unpaid within 21 days. A combination of secured and unsecured tax finance resolved the liability, the statutory demand was withdrawn and the business continued trading.

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