HMRC Ban credit card oayments

brianBarrett

I usually pay my personal tax, and business taxes such as VAT and Corporation tax via credit card. This serves 2 purposes: the ability to keep the balance on permanent low rate cards at their maximum (so if min payment £100 and interest is £20, I pay £80 usually against my future VAT bill), and secondly because I probably will not have the money available at the time the tax is due. This gives me time to get ore funds in to pay the bills before incurring charges.
I have just, however, received a letter from HMRC saying that from 13-Jan they will be stopping accepting payments by CC as they will no longer be able to re-charge the credit card fees - which were a very reasonable 0.415% or 0.386% - and on Barclaycard I actually get 0.5% cashback so no real change if that card is used.
This appears to be an unintended consequence of Martin's plan to stop high credit card fees being changed. Unfortunately this has left me with no means of paying my Self-Assessment bill at the end of January. The legislation has clearly been too extreme and is grouping 'reasonable' recharges of fees, say less than 0.5% with airlines 2/3% fees.
I have not calculated my tax yet, and usually getting it done at the last minute has not consequence as I just pay by card and sort if out later. I cannot pay early as I would be making the payment in the previous month's cycle and would get no time before the full payment was due against my card.
Has anyone else had this letter? And what are we going to do about it? I have written to my MP and to HMRC noting that the notice they have given is far too short. The amounts of money payable with the Self-Assessment require several months to 'fit into normal cash flow'. They cannot give only 6 weeks notice - but they have. The stance I am taking is that I will not be refusing to pay my self-assessment, but I will be refusing to pay it via means other than by credit card. If they have to pass my debt onto a debt-collector, then it will cost them more than 0.5% and I will probably still be allowed to pay the amount by Credit Card to the collector. I will, however, refuse to pay the £100 late payment fee - as I am not refusing to pay, and if they lock me up for non-payment so be it!
Is Martin aware of the unintended consequence of his promotion of the legislation which has resulted in HMRC stopping taking payments by credit card?

badmemory

It may have been an unintended consequence but it was a totally expected one.

If you pay your road tax by cc then expect that facility to be withdrawn too.

You can also expect to stop being able to pay for your holiday by cc as they have been chargers for this for a long time. We can't expect someone else to fund us because we can't afford to pay & that is what it boils down to now.

comeandgo

HMRC did give warning earlier this year that credit card payments would not be accepted.

antrobus

brianBarrett wrote: »

I usually pay my personal tax, and business taxes such as VAT and Corporation tax via credit card. ....

Corporate, business and commercial cards aren’t affected by this change. However, customers will have to pay the credit card fee in addition to any tax paid.

https://www.gov.uk/government/publications/customs-information-paper-29-2017-withdrawal-of-personal-credit-card-payments/customs-information-paper-29-2017-withdrawal-of-payment-by-personal-credit-card

brianBarrett wrote: »

The stance I am taking is that I will not be refusing to pay my self-assessment, but I will be refusing to pay it via means other than by credit card. If they have to pass my debt onto a debt-collector, then it will cost them more than 0.5% and I will probably still be allowed to pay the amount by Credit Card to the collector. I will, however, refuse to pay the £100 late payment fee - as I am not refusing to pay, and if they lock me up for non-payment so be it!...

If you find it difficult making a payment, other than with your personal credit card, you should contact HMRC at the earliest opportunity. In certain circumstances (depending on the type of tax you owe), we may be able to agree to a protracted payment.

https://www.gov.uk/government/publications/customs-information-paper-29-2017-withdrawal-of-personal-credit-card-payments/customs-information-paper-29-2017-withdrawal-of-payment-by-personal-credit-card

Interest on late payment of tax is 3%. HMRC do not lock people up for non payment of tax. They make them bankrupt and take away their house.

Don't be a numpty.

HHarry

With regards your personal tax - the payment on the 31st Jan is only to collect the final amount due to April 2017, and your payment on account to cover Apr-Oct 2017 (in theory).

So whilst having the money on a low rate credit card is a very MSE idea - you have had the money to pay your self assessment bill already.

[Deleted User]

You should have the money (cash) put aside to pay your tax.

That's just poor money management

A4445

Maybe you could apply for a money transfer card. You would be able to transfer the funds to your bank account and then pay via debit card.

J_B

brianBarrett wrote: »

I have just, however, received a letter from HMRC saying that from 13-Jan they will be stopping accepting payments by CC ..........

Could you not pay before 13 Jan?

J_B

!!! wrote: »

You should have the money (cash) put aside to pay your tax.

That's just poor money management

Or alternatively, it *may* be excellent money management ... we don't really know all the circumstances, do we!

brewerdave

badmemory wrote: »

It may have been an unintended consequence but it was a totally expected one.

If you pay your road tax by cc then expect that facility to be withdrawn too.

You can also expect to stop being able to pay for your holiday by cc as they have been chargers for this for a long time. We can't expect someone else to fund us because we can't afford to pay & that is what it boils down to now.

I think it unlikely that the holiday cos. will refuse payment by cc. Too much business to be lost !!

BoGoF

I think you will find the late payment fee is potentially a lot more than £100 for Self Assessment. It is 5% of the amount unpaid at tje end of Feb