We are accredited under the Coronavirus Business Interruption Loan Scheme (CBILS). Check your eligibility & apply today. Find out more →

  • VAT import tax changes
  • Businesses need more clarity on VAT import taxes

Views from the flipside

With significant changes to VAT import taxes potentially due this year, our Managing Director Peter Alderson discusses how small businesses need to be better represented.

01_peter.jpgRecent press surrounding the proposed controversial changes in VAT on goods imported from the European Union after Brexit will no doubt be a keen discussion point for many businesses. If the changes currently passing through parliament become a reality, it could result in some 200,000 UK firms, who are required to import goods as part of their core business, having to find a solution to covering the cost of VAT duties upfront.

Presently, UK firms who import machine parts or any goods ready for sale from the EU can register with HMRC to bring them in free of VAT. They simply register the VAT charge and reclaim it, as VAT is only added to the price of the product when it’s sold to the final customer. Once the UK leaves the EU, however, that could change, and by frontloading VAT, it will no doubt create additional cash flow burdens for UK businesses, along with potential delays to the customs process.

Fast, no-nonsense VAT loans

The British Retail Consortium, who represent 70% of the UK retail industry indicate that there are potential mitigation measures to be considered, including suggestions that the Treasury either provide greater assurances on VAT deferment schemes, look to introduce postponed accounting periods for VAT payments, or alternatively, that businesses explore revolving credit facilities with banks and other financial providers to navigate these changes.

Either way, as a nation with great history in trade, it’s vital that whatever the outcome, both our ability to trade and the success of our economy must be protected.

With Brexit front of mind for business leaders, it feels like another blow for small businesses and the pressure is on for government to quickly remove the uncertainty and provide businesses with clarity around this subject. Whilst changes remain a possibility however, businesses should look to explore the options available to them to meet these obligations.

Our short-term business loans can be used for a variety of businesses purposes, including assisting small business owners to spread the cost of VAT. We continue to help thousands of business to spread the cost of essential outlay such as Corporation Tax, Personal Tax and VAT every year.

If you’d like to discuss how an White Oak UK loan facility could assist your business, please get in touch.

Everything you need to know about Corporation Tax and VAT

Why choose White Oak UK?

  • No red tape, so you can receive funds in as little as 24 hours
  • We accept 4 out of every 5 applications
  • Apply quickly and easily with E-sign loan documents
  • You’ll always speak to the same person
  • Free up cash flow for other areas of your business
  • Tailored finance agreements to suit your specific needs

Views from the flipside

What our customers say

We could not have been happier. Banks as usual were a nightmare - they took over six weeks to eventually refuse for vague reasons unexplained. White Oak UK were professional, helpful, friendly, and best of all, fast.

credit-awards2018 Winner - Flintshire Business Awards leasing-life-award2018 leasingworld2018-1 SME Awards - Alternative Funder of the YearInnovator of the Year 2016Business Comparison Asset Finance Lender Award Growing Business Award - Amazon