Finance for HMRC Investigation Tax Debt
An HMRC compliance check or discovery assessment can create a large, backdated tax liability. Where the liability is accepted - or the undisputed portion must be paid while an appeal proceeds - bridging finance provides the funds to pay HMRC promptly.
Discovery Assessments and Compliance Checks
This stops interest accrual on the undisputed element and demonstrates good faith to HMRC while the disputed portion is properly contested.
HMRC Investigation Tax Finance - August 2026
| Scenario | Approach | Rate | Notes |
|---|---|---|---|
| Discovery assessment - fully accepted | Bridge full amount; pay HMRC; repay from cashflow or asset sale. | 0.70%-0.85%/month | Accepted liability treated same as any other tax bridge. |
| Discovery - disputed; paying undisputed element | Bridge undisputed amount; appeal balance via statutory review. | 0.70%-0.90%/month | Prevents interest accruing on undisputed element during appeal. |
| Compliance check - agreed settlement | Bridge settlement figure; pay HMRC; repay from assets. | 0.70%-0.90%/month | Settlement agreement gives certainty of amount. |
| VAT compliance check - disputed assessment | Bridge undisputed VAT; appeal disputed via VAT tribunal. | 0.75%-0.95%/month | Tribunal appeals take 12-24 months. Bridge prevents enforcement on the accepted element. |
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
Why pay the undisputed element quickly
HMRC charges interest from the date the original tax was due - not from the date the assessment was issued. The longer the undisputed element remains unpaid, the more backdated interest accrues. Paying the undisputed element immediately stops interest on that portion while the disputed element is properly contested.
Statutory review and tribunal - enforcement paused
During a statutory review or Tax Tribunal appeal, HMRC's enforcement position on the disputed element is typically suspended. The undisputed element should be paid regardless - it is not part of the appeal. The bridge covers the undisputed payment while the appeal proceeds on its own timeline.
Impact on HMRC relationship
Paying the undisputed element promptly - and engaging professionally with the appeal - often results in a more constructive HMRC approach to the disputed element. Demonstrating willingness to comply on the undisputed portion strengthens the overall negotiating position.
Confidentiality
HMRC compliance matters are commercially and sometimes reputationally sensitive. DBF handles all compliance-related bridging with complete confidentiality. We require only the tax type, the undisputed/accepted amount, and the available security - not the details of the compliance matter itself.
Worked cost example
Discovery assessment: £85,000 total. Accepted: £60,000. Disputed (under appeal): £25,000.
Bridge: £60,000 at 0.80%/month. Term: 6 months.
Cost: £2,937 interest + £900 fee + £2,000 legal = £5,837.
HMRC interest on £60,000 if unpaid for 6 months: £60,000 × 7.75% × (180/365) = £2,292.
Plus enforcement risk on undisputed element (CCJ possible at 3-6 months of non-payment).
Bridge (£5,837) pays the undisputed element immediately. HMRC interest on that element stops.
Appeal on £25,000 proceeds separately. If successful, £25,000 + interest returned.
Rate context and outlook
HMRC's compliance programme has intensified since 2023, with Connect data analytics identifying tax gaps across tax years and types. Discovery assessments are increasingly common. The bridging response is one of the most straightforward tax finance applications - the liability is quantified, the exit is identifiable (cashflow or asset sale), and the lender has clear security.
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Independent, whole-of-market advice across 130+ specialist lenders. Doulton Money Ltd is authorised and regulated by the Financial Conduct Authority, FRN 814533.
Frequently asked questions
Can I get bridging while my tax appeal is ongoing?
Yes - the bridge covers the undisputed or accepted element only. The lender is not involved in the appeal - the bridge simply provides funds to pay what is agreed. The appeal is a separate legal process.
Should I pay HMRC before my appeal is resolved?
For the undisputed element: yes - paying promptly stops interest on that portion and demonstrates good faith. For the disputed element: payment can typically be deferred until the appeal is resolved. HMRC's enforcement on the disputed element is usually suspended during formal appeal proceedings.
What if the total liability exceeds what bridging can cover?
Where the investigation liability exceeds available security, formal insolvency advice may be needed. We identify this early in the assessment - we do not arrange bridging that will not solve the problem. We refer to appropriate insolvency practitioners where the liability is unmanageable.
Can my accountant or tax adviser refer me directly?
Yes - and this is the most common referral route for investigation cases. The adviser managing the compliance check identifies the bridging need when the undisputed element must be paid. A call or email to DBF with the basic details is all that is required to start.
How is investigation debt treated differently from standard tax debt?
The mechanics are identical - same security, same rates, same process. The difference is context: investigation debts may be larger, backdated, and partially disputed. We confirm the exact amount being bridged (accepted or undisputed only) before proceeding. We do not bridge disputed amounts where the legal outcome is uncertain.
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