HMRC has been accused of being ‘out of step’ with other large commercial organisations over its ban on the use of credit cards by individuals to pay their tax bills, leaving some unable to pay and facing penalties
This decision taken two years ago gives rise to particularly acute problems at this time of the year, as self assessment taxpayers normally have to pay around half their tax bill for the year by 31 January, says UHY Hacker Young.
Clive Gawthorpe, partner at UHY Hacker Young, said:
‘HMRC wants to be more customer focused so refusing to accept credit cards just seems remarkably unhelpful and anachronistic. The rule can lead to big financial penalties for taxpayers who are already struggling.Such a pity he used the word "customer"!
With so many other organisations like budget airlines now accepting credit cards without any charges it does make this policy from HMRC look out of step.’
Tax does have to be taxing.
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An ex-HMRC Officer with two decades' service, I contacted them three years ago to pay my self-assessment and was told by a female Contact Centre that they don't take credit card payments as "that would be like borrowing money to pay your tax". Err, yes, how do you fucking do it, Sherlock? After this incompetent person had been corrected, followed by about 5 hours on hold while she confirmed with 15 managers etc, she reluctantly took the payment but remained concerned about the ethics of it all. When I served as a Distraint Officer/Field Force/Debt Management officer for 14 years, the introduction of credit card payment facilities helped massively in getting the money flowing into the Exchequer's coffers. Clearly, having shit for brains is the main qualification for being a 'Collector' nowadays - and I wouldn't be surprised if the credit card ban has come from a woolly-headed twat via the staff suggestion scheme. Wankers.
ReplyDeleteErmm....
DeleteNo, the change regarding payment via credit card payment came about as they are unable to charge a fee, so Joe Public would have to pay the banking charge!
So what? Most people will NOT routinely need to settle their tax bill with a credit card payment and use of that method was always relatively low, but for a small cost out of HMRC's operating budget (they spend more on expenses), it enabled those who at that time have no other means to fully settle their tax bill, to pay up. Much more money will now be spent on needless recovery activity, through to potential enforcement. Shortsighted? yes. A surprise? No. Low IQ wankers.
DeleteYet DM will ask people to take out personal loans, remortgage or even take money out of another business in order to pay their liability. There are also lots of reports of DM asking people to lie on applications for personal loans as most lenders will not loan money to pay a tax bill!
ReplyDeleteManage your finances properly and you won't need to buy debt to pay debt!
ReplyDeleteNo sympathies! And to those that say "I'll just go bankrupt and you won't get anything", I'll say, "We're not getting anything anyway!"
Somewhat unfair there-what can I do if a company does or cannot pay my bill? Leaves me with a cash flow problem, so I have to rely on using cards until I am paid. Doesnt happen that often (but more often than I like). All my fault then....
Delete"Big financial penalties" can be avoided by taxpayers by contacting HMRC to request time to pay before the date that the late payment penalty is triggered. Many a time to pay arrangement agreed every year. The interest rate charged by HMRC is lower than credit card interest rates. Simples.
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