Self-assessment funding: The surprisingly simple tax solution for your clients

Add a header to begin generating the table of contents

Tax season — a time that can feel overwhelming for many self-employed clients and small business owners facing substantial self-assessment tax bills. But as their advisor, you have the option to offer a solution that helps them avoid the stress of it all — Self-Assessment Tax Funding.

Here’s why this type of tax funding is important, and how Swoop can help make it simple for you and your clients.

Add a header to begin generating the table of contents

What is Self-Assessment Tax Funding?

Unlike traditional employees, self-employed individuals and small business owners must calculate and pay taxes directly to HMRC, with the annual Self-Assessment Tax Return due by January 31st. For many, this deadline can cause stress and confusion — not only in calculating what’s owed but also in coming up with a large lump sum at the start of the year, which can be tough when cash flow is tight.

Self-Assessment Tax Funding offers a practical solution to this. It covers the tax payment upfront on behalf of the self-employed business owner, allowing them to spread the repayments over a more manageable timeframe.

Why would you use Self-Assessment Tax Funding over HMRC’s Time to Pay option?

When it comes to self-assessment tax funding, Swoop’s network of specialist lenders offers options that can often be more flexible and beneficial than HMRC’s Time to Pay (TTP). Here’s why it might be a better alternative for your client:

Flexible repayment terms: HMRC’s TTP arrangement has strict criteria that may not suit every client. Through Swoop’s extensive lender network, your clients can access a variety of repayment options that are better aligned with their cash flow needs.

No Personal Guarantees required: Unlike some TTP agreements, the funding available through Swoop’s partners doesn’t require personal guarantees, helping your clients avoid exposing personal assets.

Potential positive impact on credit score: Choosing funding via Swoop’s lenders can potentially help clients build a positive credit history and greater access to other funding products. Whereas, Time to Pay arrangements may not have the same effect.

Competitive interest rates and no penalties: Due to the vast network of options, Swoop’s platform offers a competitive interest rate environment, better serving the end client. Additionally, you won’t incur any potential penalties associated with TTP’s rigid terms, giving clients a cost-effective and more manageable repayment plan.

Together, let’s deliver better funding alternatives for your clients

Partnering with Swoop means giving your clients a trusted pathway to meet their tax obligations with ease, be it self-assessment tax funding and beyond. Our mission is to enhance your access to funding, streamline advisor workflows, and provide clients with a smooth, digital experience that saves both time and money.

Interested in learning more about self-assessment tax funding? Reach out to our team — we’d love to support you and your clients through a stress-free tax season.