Oral Answers to Questions

Naomi Long Excerpts

Tuesday 24th January 2012 Commons Chamber

[Miss Smith]

I certainly will join my hon. Friend in congratulating those firms. It is exactly through the private sector that we will find a more balanced recovery. I would also like to place on record my interest in the record numbers of apprenticeships in which such firms are participating, such as 440,000 more this year—up by half on the year before.

[Naomi Long (Belfast East) (Alliance)]

15. On what basis HM Revenue and Customs calculates surcharges levied for handling payments made by credit cards.

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

Her Majesty’s Revenue and Customs is able to levy a reasonable charge for the use of credit cards for payments. There are many other ways in which people can pay their tax bill without paying a surcharge. HMRC also flagged up quite early in the process how much it would cost to pay by credit card. HMRC adopts best practice, and that is why we have decided to extend these practices across business. We are launching a consultation paper later this year on banning unreasonable credit card surcharges.

[Naomi Long]

I thank the Minister for his answer. We know that the amount charged by different credit card companies varies depending on the transaction amount and the size of the institution receiving the money. Will he undertake to keep this issue under review to ensure that individuals pay only the charge that is levied by the company, and that there is no benefit to HMRC from its making additional charges?

[Mr Hoban]

The hon. Lady makes an important point. It is absolutely vital that HMRC looks carefully at the costs it incurs in processing credit card transactions and that it charges taxpayers only what are reasonable costs. We want that same approach to be adopted in the private sector as well, as that would bring huge benefit to consumers.