January is generally an anxious time of the year for the nation’s growing number of self-employed but a new rule being introduced this month could leave many unable to pay their Self-Assessment returns on time.
This is because new rules introduced by the EU will as of January 13 make it illegal to pay tax with a personal credit card.
Credit cards have often been a source of lending for cash strapped self-employed people who prefer to spread the cost rather than pay what can be a substantial lump sum in January.
The first month of the year is an unfortunate time to find large sums of money coming off the back of what can be an expensive time of year, coupled with lots of business taking time to regain momentum.
The new rules come as a result of the ban on businesses passing on 1.5% fees for credit card payments and this unfortunately catches HMRC in the same net.
An estimated 11 million people are set to be completing their tax returns this month ahead of the 31 January deadline. Late payments will generally be met with additional charges and late fees until the full balance of payments is settled.