You may have read recently that it will become law that companies are no longer allowed to levy surcharges to customers if they pay by debit or credit card with effect from 13th January.

The main industry where I have noticed the credit card surcharge has been for travel where I have had to pay a 2% surcharge to book a holiday or related costs such as flights and car hire. I have also seen it if I wanted to pay for a car deposit, car insurance, road fund license or council tax.

The good news is that from 13th January no surcharge can be levied on any transactions. In reality that may mean that the prices are increased slightly across the board so that businesses do not lose money as a result, however no one is obliged to accept a credit or debit card.

Up until 12th January 2018, HMRC will accept personal credit cards and will levy a surcharge, but as a result of this new law, they will no longer accept personal credit card payments to pay any outstanding taxes after this date.

If you do wish to pay by personal credit card, then payment should be made by 12th January and the link below can be used. Otherwise, if you find yourself short for the self-assessment deadline, you may have to look to an overdraft or taking a cash advance on a credit card which will be much more costly. 

Posted by Sean Wiegand

The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.

Lambert Chapman Chartered Accountants

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

By submitting your details you agree to receive email marketing from Lambert Chapman and have read and understood our Privacy Notice. You can withdraw your consent or change your preferences at any time by emailing us or by clicking the link at the bottom of every email we send you.

You have Successfully Subscribed!