Business Tax Payment Route Comparison - August 2026
| Route | Rate / cost | Speed | Best when | Not suitable when |
|---|---|---|---|---|
| HMRC Time to Pay | 7.75% p.a., no fees | 5-10 days for agreement | Large bill, clean compliance, TTP approval likely. | Compliance issues, prior TTP defaults, large property assets HMRC can point to. |
| Property bridging | 0.65%-0.85%/month + 1.5% fee + legal | 7-14 days | Any tax, any amount above £25k, compliance risk present. | No property; bill under £25k (fees disproportionate). |
| Unsecured business loan | 8%-25% APR, minimal fees | 1-3 days | Small bills under £30k; good credit; established business. | Poor credit; over £50k; start-up; no 2-year accounts. |
| Invoice finance advance | ~1%-2.5% + 7%-10% p.a. | 24-48 hours | B2B business; large outstanding debtors; VAT/CT timing gap. | No qualifying invoices; B2C; invoices in dispute. |
| Asset refinance | 8%-15% APR equivalent | 3-7 days | Unencumbered plant, vehicles, equipment; no property. | Assets already encumbered; old/specialist assets. |
| Director's loan (personal) | No external cost (S455/BIK risk) | Immediate | Small amounts; clear repayment within 9 months. | Large amounts; long-term need; S455 would apply. |
Indicative rates - August 2026. Rates change daily. Actual rate depends on LTV, security, credit profile, loan size, and exit strategy. Contact our team for a live rate comparison for your specific case. All rates sourced from lender product sheets and publicly available market data.
What determines your rate
Match solution to root cause: A business with large unpaid invoices and a VAT gap should explore invoice finance first - it addresses the root cause (customers have not paid). A property-owning business with no invoices should explore bridging. A small business with good banking and no property should explore an unsecured business loan. There is no universal answer.
Combining routes reduces total cost: Pay as much cash as possible first (reduces penalty base). Advance against invoices for part of the remainder. Bridge the balance. Combining routes often produces lower total cost than a single route covering the full amount.
Timing is the most critical factor: Each route has a completion speed. Invoice finance completes in 24-48 hours. Unsecured loan: 1-3 days. Bridging: 7-14 days. TTP formal agreement: 5-10 days. If the deadline is tomorrow, the choice is different from if it is in three weeks. Always assess time available before selecting a route.
HMRC relationship - the hidden value of bridging: A bridge pays HMRC in full on time - no ongoing HMRC obligation, no compliance record impact, no enforcement risk. TTP maintains an ongoing HMRC obligation for 3-12 months with the risk of breaking down. For businesses where the HMRC relationship matters (large compliance programmes, regular audits), paying on time via bridge preserves the relationship regardless of cost comparison.
Worked cost example
- Three businesses, same £45,000 VAT bill, different situations:
- Business A - Restaurant (seasonal). No property. £120,000 outstanding invoices from corporate clients.
- Best route: Invoice finance - 24-48 hours. Cost ~£1,200. Solves root cause.
- Business B - Construction (2 missed PAYE payments - TTP unlikely). Owns commercial premises £280,000.
- Best route: Property bridging - 7-14 days. Start today. Cost ~£2,800.
- Business C - Digital agency. Clean record. No property. Good credit. 3 weeks to deadline.
- Best route: HMRC TTP (call today) + unsecured loan as backup. TTP: ~£1,100. Loan if refused: ~£3,000.
Rate context and outlook
DBF's whole-of-market position means we access invoice finance, asset refinance, and unsecured business lending alongside bridging. Our obligation is to recommend the genuinely best option - and we are paid procuration fee only on completed cases, so we have no financial incentive to recommend an inappropriate product.