Corporation Tax/VAT problem

Hello,

I am writing this to ask if there is any advice/help/schemes or anything else that can help my situation.

I won’t bore you with details but I run a roof surveying business in the UK and have been Ltd for 3 years now. I used to do all my own accounting, returns etc.

As I was inexperienced I messed up on VAT returns and ended owing a lot. This ultimately lead to issues of finding the money to pay it back and then since 2021 my turnover has increased from £80000-£85000 to around £125000. The sharp increase in money has been GREAT don’t get me wrong, but due to having the VAT bill, as well as previous credit card debt and loans (getting the business started) every bit of money I was earning was going to bills/necessities and then paying debt and tax off. I’ve now been in this cycle for years.

My debt is currently: £29000

My Corp tax for last years accounts is: £51000

And I have VAT due for the last 2 quarters at: £11000.

I have managed to get my Corp tax on a monthly payment of £2000 and VAT on a monthly payment of £1000.

Obviously I NEED to pay this off asap and business is doing well but my next Corp tax bill for the next years accounts is due in August and it’s going to be around another £51000.

So by the time I get the VAT and this years Corp tax paid off (even though it’s £2000 monthly I will aim to pay off more when I can) I am going to be in the exact same spot.

Unless I win a huge both teams to score bet on a sky bet! I don’t see how I can get the injection of cash to help me out.

I now have accountants and we have made a plan to not spend more than I need to monthly to keep my Corp tax for next years accounts at 8% BUT I have so much already going out for tax and my debt I’m struggling.

We have considered remortgaging and using a load of that money £30000/£40000 to wipe my debt and the VAT, then use my business income to pay off the Corp tax.

I also can’t get a loan or anything due to bad credit score although I can get a ‘secured loan’ but the thought of this does worry me. Although I KNOW I will be able to make the monthly repayments the thought of it being secured to the house does worry me.

I’ve been in this cycle for years and would just welcome any advice.

Thanks for reading.