SMEs are Paying Tax Bills on their Credit Cards
Businesses struggling to pay their tax bills are being pushed to pay by credit card rather than defer the tax under the Time to Pay scheme, accountancy firm UHY Hacker Young has claimed. The accountancy firm warned that firms which use credit cards to pay their tax bill are charged an additional 1.25 per cent on the payment by HM Revenue & Customs (HMRC). The Time to Pay scheme, launched in November 2008, to allow viable businesses to defer payments of VAT, corporation tax, PAYE or income tax to help them manage their cashflow during the economic downturn. “HMRC have been taking a much tougher stance on Time to Pay arrangements,” said UHY Hacker Young tax partner, Roy Maugham. “It is increasingly insisting that businesses pay tax on credit card first, before it will c... »