HMRC Ceasing Personal Credit Card Payments – Could Tax Funding Work for You?

From January 2018, HMRC are making some changes to their payment methods. Individual taxpayers will not be able to use personal credit cards to settle tax bills with HMRC as a result of EU rules on recharging credit card fees.  Debit cards and corporate credit cards will continue to be accepted.

We can now offer our clients the ability to apply to fund their corporation or self-assessment tax liability and spread the cost over either 6 months, 10 months of 12 months.

Interest rates are currently: 6 months at 5% (9.5% APR), 10 months at 7% (13.4% APR) and 12 months at 8% (15.4% APR).

The opportunity can give you peace of mind, is hassle free and gives you the option to spread the tax liability. It could also enable you to preserve cash-flow for other business purposes. Alternatively, HMRC may be prepared to negotiate a time to-pay arrangement, although this can be very useful there are drawbacks . It can take a long time to setup and it may not be a straightforward process.

If you already have the funds ready to make the payment you may not want to consider this funding option but if you do want to proceed we would be happy to talk to you further.

Please get in touch with your client manager or email taxfunding@baldwinandco.co.uk for more information.

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