Commercial finance · Method · Exploratory
How the hmrc / tax-funding cost explorer works
Explore a private lender loan for a tax liability, not an HMRC Time to Pay arrangement. Product availability is unconfirmed.
Availability of this type of funding through Ocean Capital Exchange is unconfirmed and subject to discussion.
What you enter
- Tax liability to finance
- Entire amount is financed in this illustration; no tax relief or penalty waiver.
- Annual rate
- Enter a quoted rate or your own assumption, from 0% to 100%. This is not an APR.
- Annual rate convention
- These conventions are different. Select the one matching the rate you enter; no APR is calculated.
- Finance term in months
- Whole months, 1–120; monthly payments in arrears.
- Upfront arrangement fees
- Paid separately, not financed. Enter zero explicitly if you assume no arrangement fee.
- Other upfront lender fees (optional)
- Optional. Blank means zero assumed additional fees, not a promise of no charges.
Method and assumptions
For nominal annual interest, periodic rate = annual rate / payments per year. For effective annual interest, periodic rate = (1 + annual rate)^(1 / payments per year) − 1.
Reducing-balance payment = principal × periodic rate / [1 − (1 + periodic rate)^(-number of payments)]. At zero interest, payment = principal / number of payments.
Flat interest = original principal × annual rate × number of payments / payments per year. It is not equivalent to a reducing-balance rate or an APR.
Fees are paid once upfront. Total financing cost is interest plus fees; total cash paid is loan repayments plus upfront fees. Final repayment adjusts penny rounding. Provider schedules, early settlement and variable rates are outside the model.
This models borrowing the entire tax liability from a private lender and paying that lender monthly. It does not model an HMRC arrangement, alter the liability or waive penalties.
HMRC Time to Pay is an arrangement directly with HMRC under its own assessment and terms. Its interest, charges, deadlines and approval cannot be inferred from this private lender illustration.
Tax deadlines and potential penalties remain outside this calculator. Obtain tax advice and confirm any funding product's availability and actual terms.
Status of these figures
Illustrative only, not a binding finance offer. Costs vary by lender and applicant; additional fees may apply and eligibility is subject to assessment. Ocean Capital Exchange is an introducer, not the lender. Product-specific regulatory disclosures require review before production. This models private lender finance, not HMRC Time to Pay or HMRC interest. Standalone product availability has not been confirmed.
Not every commercial finance product is regulated, and regulatory treatment varies by product, provider and borrower. Ocean Capital Exchange introduces businesses to third-party providers and is not a lender. These disclosures are awaiting owner and regulatory review before production.
Questions about this calculator
Does this calculate an HMRC Time to Pay agreement?
No. It illustrates private lender finance for an entered tax liability. HMRC arrangements have their own assessment, interest and terms.
Does obtaining finance change the tax owed or deadline?
No. The calculator assumes the entered liability is financed in full. It does not change tax deadlines, remove penalties or promise relief.
Independent background reading
These independent sources explain general concepts. They do not endorse Ocean Capital Exchange or confirm our providers, product availability or terms. Your provider’s agreement takes precedence over an illustration.