Alternatives to HMRC Time to Pay
HMRC Time to Pay is not the only option when you cannot pay a tax bill on time. Six alternative routes exist - each with different costs, speeds, security requirements, and suitability profiles.
All Your Options Compared
This page gives an honest comparison of all routes including TTP itself, so you can choose the approach that makes most sense for your specific tax bill, timeline, and circumstances.
Tax Payment Finance Options - Full Comparison August 2026
| Option | Cost | Speed | Requires | Pros | Best for |
|---|---|---|---|---|---|
| HMRC Time to Pay | 7.75% p.a. interest, no arrangement fee | 5-10 days for formal agreement | Clean compliance record; HMRC approval | No arrangement fee; sympathetic for genuine difficulty | Large bills where TTP approval is likely; good compliance record |
| Property bridging loan | 0.65%-0.85%/month + 1%-2% fee + legal | 7-14 days | Property ownership | Certain payment; any tax type; any business profile | Medium to large bills (£25k+); property available; compliance risk present |
| Unsecured business loan | 8%-25% APR, minimal fees | 1-3 days | 2yr accounts; good credit; trading business | Fast; no property needed; simple | Small bills (under £30k); clean credit; established business |
| Invoice finance advance | ~1%-2.5% service charge + 7%-10% p.a. | 24-48 hours | Outstanding invoices (B2B) | Very fast; addresses root cause of cash flow | VAT/CT where cause is outstanding debtor receipts |
| Asset refinance | 8%-15% APR equivalent + fees | 3-7 days | Unencumbered business assets (plant, vehicles) | No property needed; assets released quickly | Businesses with valuable assets but no property |
| Director's loan (personal funds) | No cost if interest-free; BIK tax risk | Immediate | Personal funds; company legal compliance | Fast; no third-party lender | Small amounts; director has personal liquid funds; short-term (repay within 9 months) |
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 TTP is not always the right choice
TTP requires HMRC approval, which is not guaranteed. It requires applying before or very shortly after the deadline. It charges interest at 7.75% p.a. - comparable to bridging for short periods. It can be broken by a missed instalment, creating a worse position than if TTP had never been arranged. For businesses with compliance issues, seasonal cash flow, or a history of TTP default, bridging may be more reliable.
The director's loan route - significant caveats
A director lending personal funds to the company to pay corporate tax is a director's loan. If not repaid within 9 months of the company year-end, an S455 charge applies (33.75% of the outstanding balance). The benefit in kind (interest-free loan from the director) also creates a tax charge at 2.25% of the balance. The director's loan route is only appropriate for short-term bridging by a director with liquid personal funds and a clear repayment plan.
Combining options
Multiple options can be combined. For example: partial payment from business cash (reducing the penalty base), invoice finance advancing against outstanding invoices (covering most of the remainder), and a small unsecured business loan (covering the residual). Combining options may produce a lower total cost than any single option covering the full amount.
Worked cost example
£45,000 VAT bill. Three viable approaches compared:
Route A - HMRC TTP (approved, 4-month plan): Interest £1,083. No other costs. TOTAL: £1,083.
Downside: requires HMRC approval (not certain), 4 months of compliance obligation, no security.
Route B - Property bridging loan (2 months): Interest £683 + fee £675 + legal £1,800. TOTAL: £3,158.
Upside: Certain, fast, no HMRC approval needed, pays in full immediately.
Route C - Invoice finance (B2B business, £120k invoices outstanding): £45k advance at 2% service charge + 8% p.a. for 2 months.
Cost: £900 service charge + £600 interest. TOTAL: £1,500.
Best route depends on: whether TTP will be approved, whether qualifying invoices exist, and whether speed vs cost is the priority.
Rate context and outlook
The tax finance market has matured significantly since 2020. Invoice finance platforms (MarketFinance, Funding Circle, Bibby), digital business lenders (Iwoca, Capify), and specialist tax bridging brokers (including DBF) all compete for the tax finance audience. The range of options available to businesses and individuals in 2026 is broader than at any previous time - but choosing between them requires understanding the differences.
Get a personalised rate comparison for your case
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
What is the fastest way to pay HMRC when I'm about to miss a deadline?
Invoice finance is typically fastest - 24-48 hours if qualifying invoices are available. Unsecured business loans from challenger lenders complete in 1-3 days. Property bridging takes 7-14 days. HMRC TTP requires 5-10 days for a formal agreement. If the deadline is today or tomorrow, call HMRC immediately to discuss a brief extension while finance is arranged.
What if I have no property and no outstanding invoices?
Your options are: HMRC Time to Pay (most likely route - call payment support immediately), unsecured business loan (if trading history and credit support), personal savings or assets, director's loan from personal funds (with the caveats noted), or - for amounts above £15,000 - asset refinance if the business owns unencumbered equipment or vehicles.
Can I switch from TTP to bridging mid-arrangement?
Yes - if a TTP arrangement is in place but is becoming difficult to maintain (business cash flow worse than expected), bridging can replace the TTP. The bridge pays the remaining TTP balance in full, HMRC closes the TTP, and you repay the bridge from business cashflow recovery. Switching is preferable to allowing a TTP to default.
How do I know if HMRC will approve my TTP application?
HMRC approves TTP where: the business is fundamentally viable (not in formal insolvency), the tax liability is genuine (no dispute), the compliance history is reasonable (no pattern of missed returns or broken TTP), and the repayment proposal is realistic. A history of broken TTP agreements, active HMRC investigations, or late SA/VAT filings reduces approval likelihood.
DBF recommends bridging - won't you always recommend bridging?
No - as a whole-of-market broker, our interest is in providing the best solution for each client. Where invoice finance or an unsecured business loan is genuinely better value than bridging for a specific situation, we say so. We are paid procuration fee by lenders - we have no incentive to recommend bridging over any other product.
Not sure which route is right?
We will run the numbers on both HMRC and a bridge for your actual figures and tell you honestly which one costs less. No obligation, and no fee for the comparison.