HM Revenue & Customs To Limit The Use Credit And Debit Cards For Tax Payments

London, England -- (SBWire) -- 11/24/2015 --HM Revenue & Customs have modified their guidelines with respect to tax payers that elect to settle their tax charge with a credit and / or debit card. This implies that there'll be a restriction over the number of instances a person or business will be able to use credit or debit card to pay for their tax liability.

The guideline says that starting from 1 January 2016, HM Revenue & Customs is going to restrict how many instances a tax payer can make use of a debit or credit card within a specific period to tax or tax period.

It says: 'There is not a set limit - it depends on HMRC's view of what's reasonable based on payment card industry standards and guidance.'

This guideline relates to the number of card payments towards the same type of tax bill, with tax payers mainly in a position to make additional card payments in cases where each one is for a totally different type of tax, for example business tax and employers' Pay As You Earn.

Tax payers that are not able to settle their tax completely because of the new guidance, are being urged to think about other options like electronic bank transfer.

HM Revenue & Customs will take credit or debit card payments with respect to personal tax, employers' Pay As You Earn and national insurance contributions, Value added tax, business tax, stamp duty land tax, and other tax liabilities (where Tax Payment reference starts with 'X').

Many accounting firms, including Alexander Ene are not in support of this new guidance by HM Revenue & Customs. They see it as limiting the sources of finance available to small businesses who sometimes rely on credit cards to fill short term gaps in funds flow.

For more information, visit us:
Contact: Alexander Ene
Address: 336A Regents Park Road, London, N3 2LN
Telephone: 020 8343 2626
Website: http://www.alexander-ene.co.uk/