HMRC Out of Step With Credit Card Ban

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.

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.’

Such a pity he used the word "customer"!

Tax does have to be taxing.

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Elaine Clark Nails It!

Yesterday's article about HMRC stopping personal credit cards from being used to pay business penalties, elicited an observation that HMRC were helping people avoid debt by banning personal credit cards and that businesses were not being run properly if a personal card is used.

Well over on Elaine Clark's site, a similar point was raised, and she nailed it with this excellent response:

"I'd be interested to hear how you would explain this restriction to a self employed employer without a business bank account using his or her personal credit card to settle any debts with HMRC to get things back on track.😋 

The self employed do not need to have a business account. In fact many choose not to because of charges etc which decreases their income. 

I guess when you deal with these things day in day out everyday then you immediately see the unnecessary impact.🙂 

Not only is the decision ill conceived it costs money to implement. All too often these decisions are made by people who are so far removed from the 4 million plus micro businesses in the country."

Well said Elaine!

Tax does have to be taxing.

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HMRC Stops Use of Personal Credit Cards for Payments - Bonkers!

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!

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!"

I agree, on the face of it this decision makes no sense given that HMRC still accepts card payments.

Does anyone know why HMRC has done this?


Tax does have to be taxing.

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Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

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HMRC Rip-off Credit Card Fees Banned From 2018

#HMRC charges fee (up to 2.4%) for paying a tax bill by credit card, which it won't be able to do after 13 Jan 2018 https://t.co/c4z1LZK6lv

— Rebecca Cave (@TaxwriterLtd) July 19, 2017

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"