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New credit card payment fees take effect

 

Newsletter issue - May 2016

Clients may be interested to know that HMRC have introduced a new schedule of fees, which apply from 1 April 2016, and replace the former 1.5% fee. The new rates vary depending on the type of card used and whether the card is a personal or corporate card.

Broadly, the fees for paying using personal credit cards have been reduced and the rates for corporate credit cards have increased. The new rates can be found in the schedule to The Fees for Payment of Taxes, etc. By Credit Card Regulations 2016 (SI 2016/333).

For personal credit cards, the fees are as follows:

  • VISA Personal Credit Card - 0.415%
  • MasterCard Personal Credit Card - 0.386%
  • MasterCard World Premium Credit Card - 0.374%
  • MasterCard Signia Premium Credit Card - 0.606%
  • MasterCard Elite Premium Credit Card - 0.606%

For corporate credit cards the fees are as follows:

  • VISA Business Credit Card - 1.508%
  • VISA Corporate Credit Card - 1.744%
  • VISA Purchasing Credit Card - 1.755%
  • MasterCard Business Credit Card - 1.973%
  • MasterCard Corporate Credit Card - 2.248%
  • MasterCard Purchasing Credit Card - 2.406%
  • MasterCard Fleet Credit Card - 2.134%

According to the explanatory memorandum to the Regulations, the change is being made to ensure HMRC recover the costs for credit card use charged by the various card-providers. The rates for personal credit cards are capped to 0.3% of an element (called the 'interchange' element) by an EU regulation introduced in December 2015. This cap does not apply to corporate credit cards.

 

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FT leisure Ltd

I have worked with Beauchamp Charles as our management accountants for over 20 years and have never received anything less than exceptional service. Their approach is both professional and personal. Finances and particularly tax strategies are a minefield for small businesses; Beauchamp Charles have in-depth knowledge of these area, which is comforting. They pay very close attention to our business activities and have provided financial strategies that have helped our company develop.

Fredrick Thomas Electrical and Maintenance

We have used Beauchamp Charles since company formation back in 1998. Beauchamp Charles offers us a one to one service as they are small enough to offer this dedicated service and large enough to do the work and offer best advice. They get to know us as individuals and a business, always giving sound advice. Frederick Thomas Electrical are in a stronger place thanks to the service we get from them.

Barnes Walker Landscapes Limited

We are a small business and had employed the same accountancy firm for many years. Two years ago we took the decision to switch to Beauchamp Charles after several othe local businesses recommended them very highly to us. We have not been disappointed with the service they have provided to us over these last two years.