HMRC’s announcement, waiving late filing and payment penalties for Self-Assessment taxpayers for one month earlier in the year is one example of economic support from government during the pandemic. However, will this and other state support packages like ‘Time to Pay’ be withdrawn as the pandemic eases? And what other payment choices will be available to customers paying tax bills in 2022?
Wider payment options
With inflation at its highest level for almost 30 years pushing up expenses, both individuals and firms are coming under increasing pressure to meet everyday costs such as tax payments. Premium Credit is giving credit brokers an alternative payment option for their customers allowing them to pay tax in a more manageable way.
We provide customers with the ability to spread the cost of tax bills over convenient monthly repayments rather than having to pay in one lump sum including Self-Assessment invoices, quarterly VAT bills and Corporation Tax.
Recent research from Premium Credit shows SME cash balances are being squeezed significantly – around one in three firms (33%) say cash reserves have fallen during the pandemic, while 7% say their firm has no cash reserves. Just 13% say they have seen a rise in cash reserves. Paying big ticket items like tax bills in instalments is one way to help maintain liquidity. We are already seeing high demand for our finance facility throughout 2022 as customers look for new ways to preserve cash flow amongst the challenging economic conditions created by Brexit and Covid-19.
There are multiple advantages to offering a finance solution:
- Free up the customers' cashflow by aligning tax bills with other monthly expenditure e.g. rent, rates or salaries
- Cost efficient rates with payments made direct to HMRC
- Easy submission supported by a dedicated support team
- Credit brokers can earn up to 9% commission on each deal
Tax is a significant outgoing for many firms and individuals, spreading the cost can be helpful. Our payment solutions are designed to give customers better control over cash-flow, allowing cash reserves to work more effectively and to better meet their current needs.
Partnering with Premium Credit is a strong option for credit brokers wanting to offer this service to their customers. It’s a simple digital application process. With years of significant investment in technology we ensure the whole customer journey is a smooth, seamless process – we as the lender undertake the bulk of the administration. Quick decisions are made on behalf of the customer; we offer cost efficient rates and no guarantees are needed for applications under £150K.