Tax and VAT loans for Irish companies

Yes. Some banks and non-bank lenders offer tax loans so a limited company can pay corporation tax, preliminary tax or VAT to Revenue on time and repay the lender monthly, usually within a year. Our panel may be able to help with tax-bill funding through a general business loan. The lender decides, based on affordability and your company's trading record.

Not always. Revenue charges interest of 8% a year on phased payment arrangements for corporation tax, and 10% for VAT, employer taxes and RCT, and asks for a down payment. A tax loan may cost more or less once its fees are included. Compare the total cost of both options, and talk to your accountant before choosing.

Contact Revenue early rather than missing the deadline, because late payment interest runs daily from the due date. Your main options are a Revenue phased payment arrangement, which needs a down payment and charges 8% or 10% a year, or a tax loan that pays Revenue now. Ask your accountant to check the figure and compare the total cost of both.

Revenue charges daily interest from the due date until the tax is paid: 0.0219% a day on corporation tax and 0.0274% a day on VAT. Unpaid tax can also lead to Revenue enforcement and can stop your company being treated as tax compliant, which matters to customers, grant bodies and lenders. If you cannot pay in full, contact Revenue early.

Yes. Preliminary tax is one of the most common reasons companies use tax funding, because it falls due before the year's profits have all come in. Paying enough preliminary tax on time also helps avoid interest on any shortfall. Your accountant calculates the amount; the lender only funds the payment and does not change what your company owes.

Some lenders will fund VAT and employer taxes as well as corporation tax, usually through a general business loan. Revenue's phased payment interest on VAT, employer taxes and RCT is 10% a year, so compare any loan offer against that. Tell us the tax type, amount and due date, and we will tell you honestly whether our panel can help.

Some lenders say they can decide within a few days of a complete application, but this is not guaranteed. Start well before the Revenue deadline, have your tax computation or Revenue statement ready, and remember that a late payment starts building daily interest from the due date, not from when the loan arrives.

No. Tax funding only changes when and how your company pays; the liability stays the same, and interest and fees add to the overall cost. If you think the tax figure is wrong, or the company genuinely cannot pay, speak to your accountant and Revenue first. Revenue publishes guidance on phased payment arrangements and tax payment difficulties.

Often, yes. Many lenders that fund corporation tax and VAT ask a director to guarantee the loan, because it is unsecured and short term. Read the guarantee terms carefully and take independent legal advice before signing. If the company then cannot repay, the lender may call on the guarantee.