Credit cards banned say HMRC!

1st November 2017

A Government crackdown on credit card charges has backfired as HM Revenue and Customs (HMRC) has said it will stop accepting credit cards from next year.

Earlier this year, government bodies slammed credit card “rip off” fees, and as of January 2018 they will be banned in the UK.

HMRC now say this move is impossible and they have no choice but to ban the use of credit cards altogether.  They claim they cannot absorb the cost of credit card fees as this would mean increasing costs elsewhere such as in higher taxation.

HMRC have charged £50 million in credit card fees to taxpayers over the last 5 years,  according to figures obtained by Telegraph Money.

This announcement by HMRC has been criticised by consumers, with some calling it “consumer unfriendly”. Consumer groups have warned it could set a dangerous precedent for other councils and government departments.

James Daley, director at Fairer Finance, said: “This is a very un-consumer friendly move by HMRC which restricts consumer choice”.

In this economic climate where some consumers are struggling with low income, restricting people from spreading household costs over their credit cards could lead to further financial difficulty. This is something that the original government crackdown did not want to see happen.