Muras Matters: HMRC Credit Card Campaign

HMRC Credit Card Campaign


HM Revenue & Customs (“HMRC”) have launched a new initiative, the ‘Credit Card Sales Campaign’ (“the Campaign”), aimed at taxpayers who have received income via a card payment and failed to notify their full tax liability to HMRC.

The Campaign is aimed specifically at people who accept card payments for goods or services and haven’t declared the card sales or haven’t registered their business with HMRC at all. The main targets in this Campaign are likely to be shops, restaurants, seasonal traders and even online businesses that take telephone orders using this technology.

Terms & Requirements

Those wishing to ‘take part’ in the Campaign need to advise HMRC, submit completed returns and pay any taxes due within 4 months of contacting HMRC.

As with previous campaigns, taxpayers will “receive the best terms on offer” in respect of penalties. Failure to take part however may lead HMRC to estimate any tax due and use their powers to seek payment through demands, personal visits and ultimately through the courts. HMRC may then seek tax geared penalties of up to 100% of the tax due if advantage has not been taken of this opportunity.

HMRC warn that they have details of all credit and debit card payments to UK businesses and will use the information to identify individuals and businesses that might have underpaid tax. Under ‘discovery’ provisions, HMRC can use new information to assess tax up to 20 years previously. Taxpayers could face higher penalties or criminal prosecution if they fail to come forward voluntarily.

If you would like any further information or advice in connection with this, or assistance in completing a tax return, please contact our Tax Director, Jenny Marks.