HMRC credit card ban leaves self-employed and small businesses seeking funding

Following this week’s deadline for tax returns, there are thousands of taxpayers across the country; from self-employed consultants to limited companies, facing urgent bills.

However, news earlier this month that HMRC have banned credit card payments has come as an unwelcome surprise for many.

According to HMRC, in 2016-17 there were 454,000 personal credit card tax payments worth a total of £741m, suggesting that there could be close to half a million people currently struggling with ways to pay.

Richard Tugwell, pictured, a director at specialist lender Together said:

“This news will be a shock for some that had anticipated paying on credit card. However, there are other alternatives. For example, bridging finance can be raised as a short-term solution, which could work where it’s just a temporary cash-flow situation.  Alternatively, a secured loan might be an option for those that want a longer-term loan but don’t want to affect their mortgage terms with a remortgage, and can choose a flexible timescale to suit.

“In a recent case, we helped a self-employed company director when they needed £60,000 for a bill from HMRC – and who were struggling to borrow from mainstream lenders, due to having multiple income streams.

“We assessed the customer’s situation and provided a loan for the full amount, secured against their £460,000 property. This allowed them to pay off the bill, which had been accruing an eye-watering £1,000 in interest each month.”

Together caters for a broad range of customers, from the self-employed and sole traders, to  partnerships and small businesses. Loans are available of up to £1million, and even the newly self-employed can apply, as unlike most high street banks, Together will only ask for 12 months’ trading history.

For more information, visit www.togethermoney.com/personal-lending/mortgages/self-employed/