Paying your tax with credit cards

Discussion in 'education & employment' started by DexterTCN, Jan 4, 2018.

  1. DexterTCN

    DexterTCN Well-Known Member

    Just a heads up in case you don't know.
    As from 13-1-18 you can no longer use a credit card to pay HMRC. 13th, not 31st.

    If you're using a cc, pay your tax before this date.
  2. skyscraper101

    skyscraper101 0891 50 50 50

    Why are they doing this? Let me guess, to save themselves a few quid by giving people less options to pay. Motherfuckers.
  3. Sprocket.

    Sprocket. No matter where; of comfort no man speak..

    They’ve got a wedding to go halves on.
  4. pengaleng

    pengaleng Lil' J Pengele PhD. The Angel of Sesh

    if yer paying yer tax bill using credit then yer probably fucked anyways
  5. DexterTCN

    DexterTCN Well-Known Member

    The law is changing in regards to cc charges on cash payments. HMRC (the public purse, in this case) would get a little less money (than the actual tax bill).

    As far as I know that is...and I don't really care or pay attention. But no cc payments after Friday next week for some reason like that. Might be an EU law.
  6. salem

    salem Well-Known Member

    Fuck, thanks for the heads up. A lot of people will be having to take cash advances because of this
  7. 1927

    1927 Funnier than he thinks he is.

    If you owe HMRC any money, you must have had the income to pay it at some point or there wouldn't be any monies due. Anyone who doesnt put aside money to pay the tax man is an idiot imho.
  8. Shirl

    Shirl Brexit my arse

    I've already sent my return in ages ago and got a nice refund as it was my first year in business I ran at a loss but I pay taxes on my pensions.

    I can understand how people don't always put money away to pay their tax, lots of people are living hand to mouth these days, including me, and if money is needed for emergencies, or even to survive to the end on the month then it's easy to put off saving to pay taxes.
  9. StoneRoad

    StoneRoad heckling from the back!

    And don't mention VAT ...
  10. salem

    salem Well-Known Member

    I'm on a pretty low income and live week to week and had a period with no work but where I still needed to eat and pay rent. Took a hit on the money I had set aside. Not ideal but made better sense then putting it on the credit card then and paying interest in the meantime.

    Being self employed doesn't mean I'm earning loads of money. I've had quite a few sleepless nights.
  11. Slo-mo

    Slo-mo Banned Banned

    Possibly, but not necessarily. You could be waiting for payment on a large order for example.
  12. bemused

    bemused Well-Known Member

    I'm doing mine this weekend, I'm sure they'll do what they normally do and as for a few grand extra.
  13. lazythursday

    lazythursday Well-Known Member

    Thanks for the heads up on this. I often pay my tax on my credit card because I am terrible at invoicing and permanently have cashflow issues - so at the moment I am utterly skint but have about 7K of invoices out there waiting to be paid.
    pianistenvy and Slo-mo like this.
  14. Mr Smin

    Mr Smin Registered Luser

    It might be worth paying someone to help you with that.
    Bahnhof Strasse likes this.
  15. telbert

    telbert Do you like sponge?

    Yeah cos its always as easy as that aint it.
    Fucking twat.
    pianistenvy, keithy, spitfire and 2 others like this.
  16. 1927

    1927 Funnier than he thinks he is.

    If it was paye you wouldn't have the choice, at the end of the day it ain't your money, and you've got to pay it at some point. Its a recipe for disaster not to ring fence it, as too many friends have found to their cost.
    A380 likes this.
  17. DexterTCN

    DexterTCN Well-Known Member

    No 1927 is right.

    The financial penalties such as TCoG* now make it a much (MUCH!) more severe regime. And gives a shit whether a person finds it 'easy' to pay their tax. Just fucking pay it, you earned the money, pay your tax. (not directed at any specific person, that)

    *taking control of goods act
    1927 likes this.
  18. FridgeMagnet

    FridgeMagnet Administrator

    I don’t see the difference between not having enough money to pay tax come January so having to put it on your card, and not earning enough on PAYE so you have to put other things on your card. The former is perfectly possible given the unpredictable cash flow that self employed people often enjoy.

    As it happens I always managed to pay my tax without using credit when I was freelance but I certainly ended up using credit at other times.
    keithy likes this.
  19. telbert

    telbert Do you like sponge?

    So if you get knocked for 40k, just make sure the money youve put away for tax goes straight to them and dont use it for paying for food, mortgage or any other bills?
    What fucking world do you live in?
  20. DexterTCN

    DexterTCN Well-Known Member

    Anyone paying £40k in tax earned way over £100k. Food isn't generally a problem, I would say. That isn't to say that financial difficulty doesn't happen to that happens just as much as to anyone else but the causes are different.

    Over-extending credit obligations is the main one for higher incomes. And Child Benefit, these days. Pension lump sums...more people are cashing them in early now. (I know it's ridiculously hard but try not to do this, you not only get a big tax bill but the pension provider will usually pay you out a lot less because of your age and you can be in a higher tax bracket for that year.)

    Anyway most tax collectors now have some wonderful tools. Basically your opportunity to lie about your financial situation has been reduced hugely. We can now tell...

    How much you have in your bank accounts
    All your loans (and if you're paying them)
    All your mortgages (and payment history)
    All your phone and car contract details (and if you're paying them)
    How much you have on your credit cards and store cards (and how often you pay them) and their limits
    Instant access to your wage details, how much you get paid each an every moth

    and lots more....aliases, address history (xreffed with variations in name/dob etc. that people used to use to gain credit/loans/cars/furniture then disappear).

    If you're really stuck you can still withdraw cash from a credit card and pay it that way. I wouldn't recommend it but lots of people live by juggling their cards/overdrafts/whatevers.*

    If you're really, really stuck just phone them. Don't ever leave it until March or beyond otherwise you've stepped into the penalties world. Get an agreement in place early.*

    *HMRC will (currently) charge 3% pa which is about the lowest % you can get.
    Mr Smin likes this.

    ATOMIC SUPLEX Member Since: 1985 Post Count: 3

    Can you still use a regular bank card, debt card?
    I'm pretty sure they always charged for a credit card so I never did it.
  22. DexterTCN

    DexterTCN Well-Known Member

    Yes, no charges on these.
  23. cheesethief

    cheesethief Well-Known Member

    I used to be self employed and was never very good at diligently putting money aside, which is one of the reasons I went back to regular PAYE employment. On PAYE you don't get the chance to use tax money for food or bills, which is advantageous if you're not great at putting money aside as you go along.

    I think one of the problems of self employment is that unless you're very strict with yourself, it's too easy to look at your bank balance and spend for today, putting off other concerns for the future. I would go for year after year making the same mistakes, always having a mad panic at this time of the year. It's way less stressful on PAYE, potentially not as lucrative or as flexible, but no more scarily big tax bills just after Xmas...
  24. Bahnhof Strasse

    Bahnhof Strasse Free the Sepsis Six!

    If you are self employed, every £1 you get in, place 50p aside (where you can't easily get at it). Come tax-time you'll have enough to cover your tax and a little left over for a drink.
    A380 likes this.
  25. Bahnhof Strasse

    Bahnhof Strasse Free the Sepsis Six!

    btw I'm not self employed, but can pay all tax in one lump if I wish, but chose to do PAYE, then a lump on any dividend (plus a lump in anticipation of next year's dividend and so on...). We had to get a new accountant this year as our old guy sadly died, (RIP Peter, true gent :(), and new accountant was shocked that I did PAYE, in a good way though, she just rarely, if ever sees folk doing that.
    A380 likes this.
  26. cheesethief

    cheesethief Well-Known Member

    Easier said than done, it's not in most peoples' nature to be so diligent. As soon as an unexpected bill comes in, the tax fund gets raided. I concluded that I lack the self discipline to safely be self employed. Self employment carries with it obligations & responsibilities that regular employment does not, anyone who can't cope with them might be better off working for someone else in a PAYE role - I know I am.
    Bahnhof Strasse likes this.
  27. Bahnhof Strasse

    Bahnhof Strasse Free the Sepsis Six!

    Which is partly why I go PAYE on my own business. But I also have to hold quite large sums of VAT and before I sorted a separate account for it I used to see it as my/company money, when it really isn't. Which is why you need to take that 50p the moment it arrives and stick it in an account that takes a month to access; it is not your money, so no matter what your personal issues are, you cannot touch it, which is much easier if it is not in your main bank account!
  28. lazythursday

    lazythursday Well-Known Member

    That seems to imply a very large income. If you earn say 20K, you only really need to put about 15p in every pound aside.
  29. Bahnhof Strasse

    Bahnhof Strasse Free the Sepsis Six!

    Well, yes. Mine is a ltd. company, so I have to put aside employee and employer NI as well as tax, so that makes it a much higher % than simple self-employed. The principle is the same, you need to rid yourself of the notion that it is your money, it isn't. Having a separate, hard to access account really does help us weaker-willed people.
    DexterTCN and UnderAnOpenSky like this.
  30. lazythursday

    lazythursday Well-Known Member

    For me it's not about being weak willed as such - it's just cashflow. I have one client that likes being billed every quarter, and others are generally several month long projects that are billed at the end - so sometimes it just works out that I have months and months between income so I have to spend all of my tax money - knowing that it will all eventually work itself out. I am pretty rigid about sticking to a monthly fixed salary though, I don't just spend what's there or decide I can take more because there's more than usual in the bank.

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