Commentary

V5.108A VAT and duties: method and time of payment (other than VAT payments on account)

Part V5 Compliance, enforcement and appeals

V5.108A VAT and duties: method and time of payment (other than VAT payments on account)

Payment of VAT and duties

V5.108A VAT and duties: method and time of payment (other than VAT payments on account)

Fee for payment of VAT return by specified means

With effect 21 July 2008, HMRC may by regulations provide that where a person makes payment to HMRC using a specified method, he must also pay a specified fee. Such a fee may only be specified if HMRC expects that it will be required to pay a fee as a result of the particular payment method used1.

Fees payable from 1 November 2020

With effect from 1 November 2020, a person making a payment by a 'relevant credit card' or a 'relevant debit card' to HMRC or a person authorised by it must pay a fee together with the payment2.

A 'relevant debit card' is a card given to a person for use in business, the use of which to make payment results in an account of the holder's at a bank, or any other institution providing banking services, being debited with the payment.

Calculation of fee

The fee is the aggregate of:

  1.  

    •     the merchant acquirer fee, ie the fee for processing the payment charged to the payee by the merchant acquirer

  2.  

    •     the interchange fee, ie the fee for the payment charged to the merchant acquirer by the issuer of the card and re-charged to the payee by the merchant acquirer

  3.  

    •     the scheme fee, ie the fee for the payment charged to the merchant acquirer by the person responsible for

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