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From 13th January 2018, business owners and the self-employed will no longer be allowed to settle their annual tax bill using a personal credit card.
It’s that time of year for business owners across the country to tackle the annual tax return. Some business taxpayers may be hoping to spread the cost of the bill by using a credit card. However, changing rules being enforced by HMRC after 13th January 2018 will mean personal credit card payments are no longer allowed. Debit cards and corporate credit cards won’t fall under the new regulations, and will continue to be accepted for the foreseeable.
This new ruling takes place at the same time as the news that businesses will also no longer be able to apply surcharges to credit and debit card payments, also coming into force on the same day. Read more about changes to surcharges here.
HMRC has introduced this ban as a direct response to the news about surcharges, meaning that they are no longer able to pass on the bank charges for processing the credit card payments, and would be unable to find an alternative solution that didn’t come through the public purse.
Unfortunately, this means that all businesses have until the 2017 liabilities deadline of 31st January 2018 to organise an alterative to settle the bill, rather than use a credit card. HMRC are encouraging businesses to pay using a debit card, or by the online and telephone services offered through their bank.
For more information on this item please visit: https://www.gov.uk/guidance/withdrawal-of-personal-credit-card-payments-cip29