06/08/2025
The VAT Conundrum!
Sarah runs a thriving catering business and is growing fast. Business is booming, new clients signing up weekly, team expanding...
Then the dreaded VAT bill arrives, and she now has to pay £45,000 to HMRC within 30 days.
Sarah's looking at her options:
❌ Drain the business account (goodbye marketing budget)
❌ Delay staff bonuses (hello unhappy team)
❌ Put expansion plans on hold (missed opportunities)
❌ Stress for weeks about cash flow
Or... she could call us at Acorn Business Finance.
Instead of paying the £45,000 in one go, Sarah could spread that £45K VAT payment over 3 manageable monthly instalments. She is a great marketer and knows that she can use some of this money to drive more traffic to her business. She has a solid and predictable track record with great returns on her paid ads campaign, increasing clients and revenue for her business, while her competitors are cutting back.
Sometimes, the best business move is keeping your options open when HMRC sends for the money.
What would you do in Sarah's situation?
You can calculate how this might work for you right here
https://adamc592.sg-host.com/VATFinanceCalculatorV10.html
Comment below your thoughts about VAT and how you prefer to pay it.
P.s The key is to know what you would do with the money if it was still available to you in the company? Could you make more with it?
Best to just pay the VAT bill though if you are just going to have it sat in the bank account earning nothing!!
