Here at Blue Skies we are fast getting in to the festive cheer. Christmas decorations are being located and dusted off, the office party is booked and everyone is ready to pull out the Christmas jumpers!
Though as surprising as it may be, it seems that HM Revenue and Customs (HMRC) are not sharing this Christmas Spirit
In a move which has massively backfired, the Government under pressure from consumer groups, announced ideas to introduce a ban on the often extortionate credit and debit surcharges in the UK. On the very same day, HMRC decided that they would also not accept any personal credit card payments from 13th January 2018 for tax payments.
As one can imagine a lot of self-employed workers, company directors, tax payers and “Joe Public” are naturally angry about this. Considering personal tax payments on account are due on the 31st January 2018, removing the option to pay by Personal Credit card will leave a number of people unable to pay their tax bill, unless they have forward planned. So if you had plans to pay your tax bill with your personal credit card, then this needs to be paid before the 13th January 2018 deadline.
What does this mean?
It means that payment can only be made through Bank transfer, direct debit, faster payment, bacs or debit card.
(For any limited companies out there that might be wondering, currently business can still use business credit cards to pay VAT, PAYE, Corporation Tax and Personal Tax if needed)
Hopefully, all of our clients are already saving towards their tax payments, with our upfront tax planning advice, so this may not hit our clients as much as it may hit other taxpayers. However as much as we all work hard to ensure we are on top of our cashflow, business life is inherently unpredictable and there will be situations where things just don’t go to plan.
And if that hasn’t made paying harder. Update for those that pay at the post office
HMRC from the 15.12.2017 have announced that you will not be able to pay at the post office either! You will be able to pay be Debit card or cash if:-
• still get paper statements from HM Revenue and Customs (HMRC)
• have the paying-in slip HMRC sent you
Some branches will allow you to pay by cheque if its made payable to “post office Ltd”
We will be shortly sending out a number of emails reminding your what is due and how to pay, if you need any further advice please give us a call sooner rather than later.
Just a reminder that if you don’t pay your personal tax bill by the 31st January 2018, HMRC will send you a rather belated Christmas present of 3% interest on the outstanding amount.
If you are a client and find yourself unable to meet the payment deadline get in touch with us ASAP, we may be able to contact HMRC on your behalf and form an arrangement.
If you aren’t currently a client but feel you may be facing a similar situation, or your 2017 tax return isn’t yet complete give us a call and we can see what we can offer.