Karl Leitelmayer, Sales Director – Tax, Premium Credit

A Perfect Storm
For many businesses with a March year-end, 1 January signals more than the start of a new year - it marks the deadline for Corporation Tax. This large payment often arrives just as working capital is under strain from festive spending, payroll, supplier costs, and year-end trading demands. It’s a difficult period when cash flow tightens and flexibility is most needed.

Funding as a strategic tool
Many companies, in my experience, still settle Corporation Tax using cash reserves or overdrafts. While this may seem straightforward, it can reduce liquidity and limit operational agility early in the year.

A more strategic option is to finance the tax bill through an instalment facility. Spreading payments over several months helps businesses protect their cash flow, sustain day-to-day operations, and avoid unnecessary financial pressure.

For credit brokers, this presents a clear opportunity to support clients. Offering a Corporation Tax funding solution not only provides immediate relief but also positions brokers as trusted partners who help customers plan ahead instead of reacting to large, annual outlays.

The next wave: Self Assessment Season
January also brings Self Assessment deadlines for individuals, directors, and the self-employed. Combined with corporate tax obligations, this can place additional strain on liquidity.

Further change is coming. From April 2026, HMRC’s Making Tax Digital for Income Tax (MTD ITSA) will affect those earning above £50,000, introducing quarterly reporting. This shift will require a more consistent approach to managing tax payments. With this likely being one of the last years under the current system, now is the time for businesses to explore smarter ways to handle tax funding.

Helping customers stay in control
At Premium Credit, we partner with brokers across the UK to provide flexible funding options that ease these seasonal challenges. Whether for Corporation Tax or Self Assessment, our tailored finance solutions help businesses remain compliant, maintain liquidity, and keep cash working productively.

A timely conversation
As another busy January approaches, one message stands out: tax bills are inevitable, but financial strain isn’t. By helping customers spread the cost through Premium Credit, brokers can deliver real value - keeping businesses agile and financially secure.

This isn’t just about offering finance; it’s about enabling smarter planning and stronger cash flow management.

To learn more, contact me, or Richard Crossland – Head of Tax, or a member of our Account Management team on 0207 191 2079 or tax@pcl.co.uk.