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HMRCs Ban On Credit Cards For Tax Payments; Putting Millions In Trouble!

Abul Nurujjaman, 



Millions of taxpayers are rather more upset by the ban going to be imposed on plastic than their annual tax bill itself.  The pain is real as HM Revenue & Customs announces a ban on personal credit card payments implementable from January 13.

 

The new ban is linked to the EU rules according to which HMRC cannot pass on 1.5 % fees to the taxpayers, the banks charge for processing. According to the recent news, more than 11 million are going to be affected by the ban, particularly for two reasons, crucial timing, as the deadline for settling tax liabilities hits on 31st January, just a few days away from the ban, and secondly, millions who already planned to spread their annual taxes over months won t be able to do so after January 13.

 

The HMRC s written warning suggests as follows, “From 13 January 2018 HMRC will no longer accept payment by personal credit card. Debit cards and corporate credit cards continue to be accepted.”

 

Taxpayers are encouraged to pay their bills through other means such as online banking, direct debit or telephone banking services. Analysts are suggesting that the ban is a major upset for self-employed taxpayers who pay their tax dues by credit cards often in order to spread the cost of a huge bill.

 

On the other hand, self-employed individuals are found complaining about the news of the ban coming out only in late December, as they don t have much time to plan.

 

Experts are also calling this ban a "user unfriendly approach" as the majority of the people are self-employed these days. It is also imperative here to understand that taxpayers cannot pay their tax dues via cash or pay cheques through post offices since the due date for that was December 15.

 

This ban ultimately means that those who intend to clear their dues via credit cards have time only until January 13. If you are one of them or even if you are looking to pay your tax bills through other suggested means, you must seek an expert advice to avoid any kind of inconvenience in the future. Taj Accountants have a special team of tax specialists who have spent years assisting small businesses in London in handling their accounts and several other financial matters, if you need any kind of financial advice or tax assistance, you can contact anytime through the numbers given on the website.


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