Companies paying PAYE bills with Credit Cards
More businesses than ever are paying their PAYE bills with credit cards, says Scotsman.com. In 2005/2006 only about £2m of tax bills were paid by credit card but in 2010/2011 that figure sky-rocketed to £486m.
It seems a massive figure and logically we should ask the question why? Why are these businesses not cutting their employees to make the savings required? The truth is that it is so hard to cut employees nowadays, and redundancy payouts can be costly anyway.
Paying PAYE bills on credit card only makes things more difficult in the future as I am sure you will know, so it is important to be honest and inform the HMRC as soon as you think you need to pay by credit card. They may offer a time to pay scheme which will probably be cheaper.