You might know that 96.5% of SMEs in the UK don’t have business credit cards and that it’s just a fact that many don’t need a credit card to continue trading. Why then, when they say ‘tax doesn’t have to be taxing’, HMRC won’t take payments from a business owners’ personal credit card?
Credit cards allow for an extra level of protection that is incredibly useful when buying larger items. A large item for a business owner can feasibly be the tax owed to HMRC by their company. We should all aim to use credit less, and part of this is to have less credit cards, but HMRC should realise that as long as all funds are properly accounted for, ‘business cash is in the right pocket and personal cash is in the left’, it shouldn’t matter where they are coming from.
And in another kick to small business owners, HMRC and Santander have not renewed the contract that allows for tax payments to be made at a post office.
Small businesses just want to pay the right amount of tax in the easiest possible way. Your local accountant will be able to assist you in working this out. If you’re on the lookout for sound business and tax advice, we’d be very happy to talk you through your options.