Paying Your Tax Bill on a Credit Card

January 28, 2009 on 11:23 am | In Debt Management

I was having a think and the most pressing debt at this time of year if you’re self employed or, for whatever reason you have to send in a tax return, is obviously your tax bill.

 

The internet provides the ability to pay your tax bill on line and this has led to the provision of paying your tax by using your credit card.

 

As you can imagine this opens a huge can of worms.  Given recent economic events I would anticipate that January 2009 will see the largest failure to pay tax on time in recent history.  The Government is nervous that it won’t get paid.  By allowing people to pay on credit cards, the credit card companies may be in for the hit and not H M Revenue & Customs.

 

If you simply can’t pay your income tax bill you could pay H M Revenue & Customs late and suffer the penalties.  Paying your tax bill on a credit card would be ok if you have payments coming in shortly after but the fact remains that you haven’t budgeted for your tax in the previous year and it follows that you have ran your business by using your tax money.

 

Paying your tax bill on a credit card is the most obvious indicator that you are struggling.  Get advice before doing so.

 

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