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UK To Reject Payment From Personal Credit Cards

by Jason Gorringe, Tax-News.com, London

10 January 2018


The UK tax agency is to no longer accept payments from personal credit cards from January 13, 2018, as a result of the EU Payment Services Directive 2 becoming effective.

This new legislation removes the ability for merchants including HM Revenue and Customs (HMRC) to charge back fees for payments made by personal debit and credit cards to the customer.

As a public funded body, HMRC is unable to absorb the cost of personal credit card fees as this would ultimately mean charging the fees back to customers through the public purse. As such, HMRC is unable to accept personal credit card payments from January 13, 2018, the agency has announced.

Taxpayers are being warned of the changes ahead of the January 31, 2018, filing deadline for self assessment, which typically also involves a tax payment obligation.

Corporate, business, and commercial cards and debit cards are not affected. However, customers will have to pay the credit card fee for business cards used, in addition to any tax paid.

HMRC has encouraged those who anticipate they will not be able to pay the tax due to contact it at the earliest opportunity, noting the availability of payment plans.

Personal credit card payments will still be accepted at the UK border for border-related transactions.

TAGS: tax | business | value added tax (VAT) | United Kingdom | fees | legislation | HM Revenue and Customs (HMRC) | HM Revenue and Customs (HMRC) | Tax

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