Premium Credit has seen significant growth in its tax and VAT funding services, as an increasing number of businesses and business owners opt to distribute the cost of their tax payments over time.
In 2022, the total amount that Premium Credit lent to assist with VAT bill payments was 68% higher than in 2021, and there was a 53% rise in the amount lent for non-VAT tax bill payments.
The funding provided by Premium Credit for VAT tax bills in the first quarter of 2023 was 11% higher than in the same period of 2022. The company provided 27% more funding for non-VAT tax bills compared to the same period last year.
The number of clients making use of Premium Credit’s tax and VAT funding services saw a significant uptick, with a 53% increase between 2021 and 2022. In 2022, the average loan size for VAT tax bills stood at £116,200, while for non-VAT tax bills it was £105,100.
Jennie Hill, chief commercial officer of Premium Credit’s Specialist Lending division, said: “The tax and VAT marketplace is currently valued at around £190bn annually, with an estimated £3bn to £5bn financed each year.
“As one of the UK’s leading funders of tax and VAT finance, we offer flexible solutions that allow businesses to spread the cost of their VAT, corporation tax, and self-assessment liabilities for up to a year.”
