Debt with the tax office is not to be trifled with. For the self-employed and freelancers, their professional existence depends on the payment of the tax liability.

We support you in your loan search with information and offers on the loan for the additional tax payment. Find out which loan solution is suitable for your individual case.

Back tax payment loan – starting point

Back tax payment loan - starting point

The need for credit for back tax payments is mostly associated with self-employment. For employees subject to social security contributions, the financial software for payroll accounting takes over the timely tax payment. A backlog for income tax can only arise if, in addition to dependent employment, a business is operated. Other cases of “private tax debt” would be a substantial inheritance or the acquisition of a property.

Regardless of the reason for the tax liability, the tax office knows no “pardon”. As soon as documents or the tax levied is not received by the tax office in good time, consequences will follow. In technical jargon it is said that the tax citizen should be “brought up”. The state is entitled to practically any means of doing this. The tax officer can charge up to 10 percent of the tax liability as a late surcharge.

A maximum of 25,000 USD could be on the bill for the delay. At the same time, the tax office naturally assesses the tax liability as a loan. If the tax office involuntarily grants the loan for the additional tax payment, it becomes really expensive. Despite key interest rates of zero percent, the Federal Minister of Finance sometimes even collects interest for borrowing money, the Treasury strikes. The loan from the tax office costs 6 percent interest per year.

Pay quickly – but how to finance?

Pay quickly - but how to finance?

There is no special loan for the tax debt. The additional tax payment is financed by a normal installment loan. Unfortunately, not all debtors are equal when it comes to accessing credit for tax debts. When it comes to credit requests, the company is divided into two classes. – Employees and the self-employed who are subject to social security contributions.

It is particularly easy to get a loan to pay back tax if income that is subject to social security ensures the ability to repay. As a rule, suitable and particularly low-interest free-use installment loans can be found on the internet via free loan comparisons. The application process is self-explanatory. It only takes a few minutes to fill out the initially non-binding loan application.

The system replies with the preliminary loan approval. If you have applied for the required ID check via Videoident, the legally binding application can be completed in the next 30 minutes. It can take up to half an hour for an employee of the inspection company to report via video telephony. He checks the ID, makes screen shots of the documents and then releases the loan application for processing.

About two to three days later, assuming everything runs smoothly, the loan required for the additional tax payment appears in the checking account. To transfer immediately, is warmly recommended to everyone.

Because the tax office shows “right teeth”, even comedians find it difficult to smile. The tax office quickly writes a title for itself, including negative Credit Bureau – past Justitias slow mills.

Loan for freelancers – credit with the tax assessment

Loan for freelancers - credit with the tax assessment

As annoying as it is to pay taxes, the expensive tax bill also has advantages. Self-employed and freelancers who have been successfully self-employed for a long time can use the income tax notice. The notices from the past few years prove that the prospective customer is earning a secure income. According to the logic that whoever has to pay taxes also makes a profit, some credit institutions evaluate the income tax assessment.

The loan for tax back payment is easy to find despite free-lance again via free loan comparisons. The application requirements provide information about which banks do not generally reject freelancers and the self-employed. 

The non-binding preliminary credit check is recommended for two reasons. For one thing, it does not worsen Credit Bureau. On the other hand, it shows the interest rate at which the bank actually grants the loan needed to offset the tax. With 6 percent, which the tax office calculates, the borrower does not necessarily get by. The bottom line is that an installment payment agreement with the tax authority might even be cheaper.

Credit in difficult cases – private lenders

Credit in difficult cases - private lenders

Not every request for a loan to pay back tax is based on mismanagement or addiction to waste by the entrepreneur. Especially after large investments, young entrepreneurs easily underestimate what it means to be able to write off only partial amounts of the investment. This ingenuity – down-to-earth thinking – is now taking its toll. The cash register is actually empty because machines or vehicles were bought and not leased.

Even so, the Treasury will insist on payment, even if it means the bankruptcy of the emerging company. Bank credit at this point is likely to be exhausted. The money and current profits were invested. Before things get really tricky, it is advisable to try crediting via Best Lender or Good Finance. Both loan portals broker private loans.

In contrast to banks, private investors do not necessarily make a decision with the focus on the greatest possible credit security. A portion of honesty is part of explaining the situation in a way that investors can understand. But the purchased and paid capital goods offer security at the same time. This would make it easier for investors to win the loan for back tax payments if the existing real assets secure the loan.

This is made possible, for example, in the vehicle fleet by depositing the vehicle letter with Best Lender. The loan value of the vehicle is considered secured for the loan to offset the tax liability.

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