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VAT Deferral

VAT Deferral

VAT deferral allows you to defer VAT payments for 3 months meaning you will have additional time to make the VAT payment on your purchase.

What is VAT deferral?

When securing finance for assets such as cars, construction equipment and agriculture machinery under Hire Purchase, there’s usually a requirement for the VAT to be paid upfront.

While it’s fully recoverable for VAT-registered businesses, this initial payment of VAT can put additional pressure on cash flow for businesses.

We can offer an option to defer the VAT for up to 3 months from the date of the finance agreement, giving you additional time to pay.

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Who is eligible for VAT deferral?

All businesses within the UK which are registered for VAT can apply for defer VAT for 3 months on all hire purchase agreements for assets such as machinery, cars, construction equipment and agriculture machinery.

How does VAT deferral help my business?

The requirement to make the next VAT payment is essentially delayed for three months, meaning you will be able get the refund from the HMRC before the VAT is due to be paid. This will assist businesses with short term cashflow problems.

Is the VAT deferral scheme compulsory?

No, the scheme is not compulsory. Businesses can continue to stick to their current payment due dates and pay their VAT as normal. However, it is beneficial for businesses cash flow to use the VAT deferral option on purchases.

How to apply for VAT deferral

If you would like further information about vat  deferral options, simply fill in the form and we will contact you. If you want to speak to someone directly, you can call us on 0115 958 6872 and a member of our team will be happy to speak to you. Alternatively, email us at

Other Products We Offer

Additional products in our extensive range of Financial Solutions

Asset Refinance

Asset refinancing is a way of raising capital against assets you hold on your balance sheet.

Asset-Based Lending

Asset-based lending (ABL) is a type of finance in which a business can use its assets, such as inventory and property to release working capital.

Finance Lease

A finance lease is simply renting the asset over an agreed period of time and you usually remain responsible for the maintenance.

Hire Purchase

Hire purchase allows your business to buy an asset by spreading the cost over a fixed period of time with regular monthly instalments.

Invoice Finance

Invoice finance provides early access to the funds owed to you in unpaid invoices if you find your business waiting for customers to pay for your services or products.

Unsecured Loans

An unsecured loan is a way of injecting cash into your business if you need help with working capital or general expenses.

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