CCH Daily reports that HMRC has confirmed that employers will not be able to pay PAYE penalties with a personal credit card from 13 January 2018.
However, it will continue to accept payments by company credit card or debit card, as well as BACS payments.
All payments must include the 14 or 15 character payment reference that begins with X and is on the payslip. Payments may be delayed if the wrong reference is used.
It will also not accept part payments by credit or debit card so any employers who are unable to make full payment by card will have to pay a different way, through telephone banking, CHAPS or Bacs using sort code 08 32 10, account number 12001020 via HMRC Shipley account.
Elaine Clark is unimpressed, and refers to HMRC's decision as "bonkers":
"Surely the role of HMRC is to collect tax!I agree, on the face of it this decision makes no sense given that HMRC still accepts card payments.
If someone is willing to settle debts, regardless of the source of funds, isn't it HMRC's remit to collect the tax on behalf of the Government.
Otherwise what is their job?
Personally I think they HMRC have lost the plot or they have some sort of hidden agenda which we can all speculate about.
Whatever is happening this is just a completely bonkers decision which would have cost money to implement!"
Does anyone know why HMRC has done this?
Tax does have to be taxing.
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Isn't the point of this the fact that by using a credit card you are effectively "buying more debt"? If you have to use a personal credit card, then you are not running your business properly by putting money aside so it's ready for when deadlines are due. Too many businesses use tax and NIC money to keep the business afloat when, in reality, they are not making proper provision for the future.
ReplyDeleteHMRC's role is to collect tax on behalf of the Government not to judge people on how they run their business!
DeleteHMRC are morally superior to all else, apart from when they're breaking the law and causing & allowing violence & bullying against their own staff by other staff.
DeleteAs recently alluded to, on contacting HMRC to pay a liability on a credit card they were initially rebuffed by a member of staff apparently unaware they could accept that method of payment. There was an apparent uneducated, moral objection that it was borrowing money to pay tax.
ReplyDeleteHMRC are indeed there to collect the 'right amount at the right time'. Simple.
I don't accept the argument that using credit is not running the business correctly. Such is the reality of cashflow, businesses have always, and will always, use debt/credit to pay their bills.
Paying on a credit card is not really any different to using an overdraft facility (which businesses will continue to do. Most responsible businesses always aim for funds in the account to meeting pending liabilities. If something more urgent comes up though which has to be paid to survive, like staff wages, mortgage etc, then this money invariably gets used.
This is another madcap decision from HMRC which makes no sense, possibly via a suggestion from an office based debt management AO, who knows little about the realities of the business world and which has been sanctioned by the low quality senior management.
Rather than getting on with the job I fear this HMRC once again attempting to be the moral arbiter. The only way they may change their mind is be escalating this to their political masters.
On the matter of morals, the high & mighty HMRC would do well to get their own house in order. The brutal bullying regime which too many of their own staff have had to suffer is an absolute f**king disgrace and the guilty, and those who help to cover it up, really should be held to account.
Highly unlikely this came from an AO, even if it did it would have gone through several higher grades to green light it as policy
DeleteDefinitely not an idea from an AO.
DeleteThis comment has been removed by the author.
ReplyDeleteApparently, personal credit cards will no longer be able to be used to pay any tax , not just part penalties, next year due to the new law stopping surcharges for using debit/credit cards.
ReplyDelete