HMRC Monitors Card Payments to Businesses

HMRC is now able to access data payment information from the UK’s Merchant Acquirers, and has received the first sets of data providing monthly credit and debit card income from UK businesses.

What are Merchant Acquirers?

Merchant Acquirers are financial institutions that process all credit and debit card transactions on behalf of UK businesses. In the UK there are 8 main Merchant Acquirer businesses operating in the UK.

What are HMRC doing?

HMRC are going to match taxpayer records against the data received by Merchant Acquirers to identify people who may be trying to evade tax, either by failing to report, or deliberately under-reporting, their business income.

The purpose of this exercise is for HMRC to:

  • Ensure that businesses are correctly declaring all their income
  • To improve fraud detection 
  • To increase their understanding of the behaviours and compliance profile of businesses who receive credit and debit card income.

What should you do?

HMRC  recommends that businesses which accept credit and debit card payments should check their processes if they are not confident that they are declaring all their income.