• Premium Credit records surge in growth for its Tax and VAT funding proposition

Premium Credit, a leading provider of finance, is seeing a surge in growth for the total amount it lends and number of customers it helps spread the cost of VAT, corporation tax and self-assessment tax payments.

The number of customers using the Tax and VAT funding service has more than doubled in the past two years by 108% while the total value of lending provided last year was 52% higher than in 2022.

The first quarter of this year has seen a 37% rise on the same period last year in terms of total lending and a 22% rise in customers.

Lending for VAT bills was 24% higher last year than in 2023 while lending for corporation tax and self-assessment tax payments rose 29%. The number of customers borrowing for VAT bills last year was 17% higher than the previous year while the number borrowing for other tax bills rose 36%.

Last year, the average size of loan to help pay VAT tax bills was £108,000, and for non-VAT tax bills it was £70,000. In the first quarter of this year the average loan for VAT bills was £111,000 compared to £100,000 for other tax bills.

Jennie Hill, Chief Commercial Officer, Premium Credit (Specialist Finance) said: “Around £3 billion to £5 billion of tax and VAT liabilities are financed each year and recent increases to Employers’ National Insurance are adding to the strain on SME cashflow.

“That helps explain the growth of flexible VAT, corporation tax and self-assessment solutions which enable businesses to spread the cost of annual and quarterly liabilities into convenient monthly payments for up to a year.”

For further information on Premium Credit’s Tax and VAT funding proposition, please visit https://www.premiumcredit.com/products/tax-and-vat