Tax pressure often comes down to timing, not performance

Managing corporation tax without disrupting cashflow – two businesses, one challenge

Read time: 2 minutes 

Tax pressure does not tend to come from performance. It comes from timing. 

Here are two examples from two different businesses, essentially with the same challenge, a gap between when tax is due and when cash is available. 

Established food production business 

A long-standing UK food producer experiencing consistent growth moved into quarterly corporation tax payments. 

Challenge 

• More frequent tax payments under QIPs 
• Overlapping liabilities in the same period 
• Cash already committed into stock and growth 

Funding need 

Spread a large corporation tax liability without pulling working capital out of the business 

Solution 

£260,000 tax loan over 12 months, structured to fit the business cycle 

Outcome 

• HMRC liabilities met in full and on time 
• No interruption to investment plans 
• Operations continued as normal 

Regional landscaping and maintenance SME 

A growing service-based business faced a year-end corporation tax bill with little time to act. 

Challenge 

• Looming tax deadline 
• Cash tied up in ongoing work and receivables 
• Limited time to put a solution in place 

Funding need 

Access funding quickly without disrupting day-to-day cashflow 

Solution 

£40,000+ tax facility arranged and completed within days 

Outcome 

• Tax paid on time 
• Cashflow protected 
• Repayments spread to ease the impact 

Key takeaway 

These are two different businesses with two different situations, but the same issue underneath. 

A gap between when tax is due and when cash is available. Funding closes that gap before it becomes a problem. 

Why refer tax cases to CCBS 

1. Access to lenders who actively support tax-led transactions 
2. Ability to deliver in time-sensitive situations 
3. Facilities built around how the business actually operates 
4. Clients meet HMRC obligations without disruption