Brits Are Taking Out Personal Loans to Meet Tax Bill Demands

According to Sainsbury's bank, thousands of Britons are opting to use personal loans to pay their tax bills. Many find that their tax bills are larger than they budgeted for and will consider applying for a personal loan to either make up the shortfall or pay the whole bill. The bank estimates that the average loan amount will be £10,885, to pay tax bills.

Sainsbury's bank estimates that between January and March of 2007, UK consumers will take out just under 450,000 personal loans totalling around a whopping £49.76 million.

The bank advises those looking to take out a personal loan to meet their tax bills, should shop around for the best deal possible. 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."

One reason the bank arrived at this conclusion, was based on findings by HM revenue and Customs that revealed around 900,000 Brits missed last year's tax self-assessment deadline thus incurring a £100 penalty each.

Mr Baillie added: "With the 31 st January deadline just around the corner, those doing this need to ensure that they have shopped around for a competitive rate, can get an instant decision and access to the funds as quickly as possible, and whatever they do, don't incur the £100 late penalty."

There are many loans available in what is an ever-competitive UK market, with APR's as low as 5.9%. For those facing the tax bill deadline, Sainsbury's bank offer loans with a typical APR of 6.5%, an instant decision and the funds available within 24hrs. Why not use a personal loan to meet any shortfall in your tax bill and the rest to consolidate Christmas debt, especially debt on credit cards?

Alisdair Milton
16th January 2007