This choice taken two years in the past offers rise to notably acute issues at the moment of the 12 months, as self evaluation taxpayers usually should pay round half their tax invoice for the 12 months by 31 January, says UHY Hacker Younger.
Subsequent week, on March 1 taxpayers face a penalty of 5% on any tax unpaid from the 31 January deadline. If they’re six months late they face an extra 5% penalty.
The agency says the ban on using bank cards by people implies that 1000’s of cash-strapped taxpayers obtain penalties for late fee of their self evaluation tax payments and have to rearrange a fee plan with HMRC.
HMRC statistics present that final 12 months, over 600,000 particular person and enterprise taxpayers fell behind on their tax funds and have been compelled to reschedule them with HMRC by means of ‘time to pay’ schemes.
UHY Hacker Younger argues that whereas these preparations provide an prolonged pay interval to pay again their taxes, the schemes may be fairly rigid and lots of taxpayers should spend time making an attempt to barter beneficial phrases relatively than simply being allowed to make use of a bank card.
The agency factors out that, as with different organisations HMRC isn’t allowed, by regulation, to cost a price to shoppers paying by bank card.
Reasonably than absorbing the small charges charged by bank card firms, HMRC as an alternative determined to position a blanket ban on people utilizing bank cards.
Clive Gawthorpe, associate at UHY Hacker Younger, stated: ‘HMRC desires to be extra buyer centered so refusing to just accept bank cards simply appears remarkably unhelpful and anachronistic. The rule can result in huge monetary penalties for taxpayers who’re already struggling.
‘With so many different organisations like finances airways now accepting bank cards with none prices it does make this coverage from HMRC look out of step.’