Good news! January 2018 sees the ban on ‘rip off’ credit card surcharges. The Government has followed a new EU law stating that companies are no longer allowed to charge consumers for using credit cards. Consumers will benefit from the cut, with averages showing that some have previously racked up a total of £473 million on card charges alone.
HMRC responds
Some companies are expected to respond by increasing prices to cover the costs. However, HMRC have decided to decline personal credit payments through credit cards altogether.
This news came to light on January 13th, just two weeks before the years self-assessment tax return deadline. Understandably, it caused some difficulty for the 11 million Britons completing their 2016/2017 annual tax return.
But why?
After their announcement, HMRC stated that their decision was fuelled by the fact that it would be unfair to expect other taxpayers to pick up the charges fed back to them through the public purse. They also admitted that covering the costs themselves would ultimately damage their service, which would further impact taxpayers.
Stay on the ball
Even the smallest of changes can throw a spanner in the works of your tax returns. Don’t be caught out. If you need guidance on how to prepare for the annual tax return, UWM’s team of expert accountants would be more than happy to help. We can talk you through our services and discuss the best ways you can organise your finances. Get in touch today for a chat.
