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HMRC to access credit and debit card records

In a new development, HMRC have new powers to demand that businesses disclose records of credit and debit card payments made. This move, intended to form part of HMRC's increased fight against tax evasion. is directed at HMRC's suspicion that many small businesses are still not declaring all their sales. Businesses will have no say in the process as the changes to legislation give HMRC the right to demand information going back four years from the card merchant companies that process card payment transactions. 

HMRC said the first requests are due to be sent this week.

Although cardholders' personal data will not be supplied, this represents a significant new development in the ability of HMRC to obtain information about a business's transactions from other sources.

Obviously, if you have a business which involves credit or debit card transactions, you should check that you are recording sales correctly. You should also ensure that you are declaring VAT correctly. These types of transactions can sometime present issues, but with the proper systems in place, there should be less risk for you as a business.

If in doubt, ask!