credit cards

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... »

Credit Card

Calls for Cap on Credit Card Charges

The Federation of Small Businesses (FSB) has called on the Government to cap interest rates on credit cards to help small firms survive the recession. FSB national chairman John Wright said putting a ceiling on charges would reduce business costs and free up much needed cashflow. Research from the FSB revealed that 26% of entrepreneurs use their personal credit card to finance their business and 23% use a company credit card. “With interest rates at 1.5% and falling, the Chancellor and the Governor of the Bank of England must look into capping interest rates charged on credit cards,” said Wright. “A cap on interest rates would not only reduce business costs but give consumers a real boost and cut the cost of borrowing,” he added. However, the Department for Business... »

What Type of Plastic?

If you decide to use a card to buy goods or services use this list to decide which one is best for you. There are hundreds of cards available but most fall into one of these categories. To add further confusion you’ll find that card issuers offer gold, platinum and ordinary cards – these are the same types of cards with different conditions and benefits. Debit cards These take money directly from your bank account, they’re not credit cards but an alternative to cash or writing a cheque. Linked to your bank account, debit cards often also work in cash machines and as a cheque guarantee card. Switch and Visa operate these schemes for the banks. Charge cards If you use a charge card you’ll be sent a bill each month which you usually have to pay in full – so again... »