UK ’using personal loans to cover tax bills

UK ’using personal loans to cover tax bills’
09/01/2007

Personal loans may be used to help cover tax bills that are higher than they were originally expected to be, it has been suggested.

Those who are looking to fund their tax bills in this way should shop around for the best possible rate, according to Sainsbury’s Bank, a company that provides the product.

Sainsbury’s Bank draws attention to HM Revenue & Customs findings which show that 900,000 people missed last year’s tax self-assessment deadline and received a £100 fine.

Consequently, the bank predicts that many people will be again taking out personal loans to cover the extra costs.

Overall, the bank estimates that close to £50 million will be taken out in the form of a personal loan during 2007 to pay for tax bills.

Furthermore, the average loan amount is expected to total £10,885, Sainsbury’s Bank reports.

Steven Baillie, loans manager at Sainsbury’s Bank, said: "Some people can find themselves facing a tax bill that is considerably higher than they had been expecting and to help cover this, will take out a personal loan."

As well as finding a competitive rate, those looking for a loan need to ensure they can gain access to funds immediately, he added.

Sainsbury’s Bank offers car finance, insurance, savings and credit card products, as well as personal loans.

http://www.qck.com/uk-using-personal-loans-to-cover-tax-bills-loans-18026940.html