Following a jump in the main rate of corporation tax from 19% to 25% earlier this quarter, Premium Credit has introduced a broker-led solution that enables businesses to spread the cost of annual tax bills over monthly payments.
Recent research from Premium Credit revealed that business cashflow was being affected by multiple causes; in addition to the recent rise in corporation tax, 28% of firms said late payment problems had worsened in the past year.
Around three in 10 (27%) firms said wage inflation would be an issue in the year ahead, and that rising energy bills were adding pressure – 14% of small to medium enterprises (SMEs) planned to cut running costs.
In order to address ongoing cashflow issues, customers with a tax bill over £10,000 can now apply for the lender’s credit facility.
Karl Leitelmayer (pictured), sales director at Premium Credit, said: “Businesses are having to be resilient in difficult trading conditions and are looking for ways to help improve cash flow.
“Spreading the cost of corporation tax over monthly payments rather than having to be pay in one annual lump sum is a strong option to help alleviate this issue helping keep cash reserves available for use as additional working capital.”
There are no application or arrangement fees, just a transaction fee added to the invoice amount.
