Start planning now for Tax and VAT payments

There are now less than 100 days until the 31st January 2026 deadline to file tax returns and pay any tax owed, meaning it’s the ideal time to start work on your return and start planning for VAT and Corporation Tax cycles too.

Too many business owners leave filing deadlines run right down to the wire and only find out how much they owe as it comes due, leaving little time for robust financial planning.

According to HMRC, on 23rd October 2025, with 100 days to go until the filing deadline, 3.5 million people had already submitted their tax return for the 2024 to 2025 tax year. This forward planning means that they will know how much tax they owe sooner and allow them to make preparations to pay the bill on time, avoiding fines and penalties.

Getting into the habit of planning ahead for VAT and corporation tax deadlines also allows for greater financial planning. Like with annual tax returns, there are finance facilities available to help ease the pressure on cashflow, but time to find the right solution is required.

Paul Trickett, BDM at Bathgate Business Finance, said: “Using VAT and Tax finance facilities can help to spread these big lump sums into fixed manageable chunks over time, easing pressure on cash flow. 

“VAT payment cycles are led by the accounting year end of a business and businesses can access funding to reduce the impact the chunky quarterly payments have on cashflow and breakdown into three fixed, manageable monthly repayments.

“Also, if a business is looking to purchase stock for resale, the VAT product comes in handy. They can lend up the total VAT payment due to purchase the stock and repay within the typical 3-month stock turn of the items.

“Corporation Tax works similar to VAT, in that it’s hard to narrow down to a specific payment period. These payments fall due nine months and one day after the end of your accounting period for your previous financial year.

“It’s still common to see the last minute panic filing after the Christmas break, and traditional lenders do not tend to commonly offer VAT and tax facilities. At Bathgate, we try to advise clients and those who come to us for advice to file as early as possible, to allow your business to prepare for these significant bills. Through our extensive knowledge and network of alternative finance providers, we are then able to broker the best solutions for their businesses.

“If you have a corporation or income tax bill due, or a VAT payment expected, speak to a trusted advisor a month or two in advance to get plans in place early and find the best option for your business. Taking this action could allow you to cut that big lump sum into smaller payments over 3, 6 or 12 months.”

To find out more about Tax and VAT finance options, contact Paul Trickett on paul@bathgatebf.co.uk or call 0151 625 7323