Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Sun, 13 Aug 2023 22:45:32 GMT by Emporium8610
I am planning to start up as a sole trader and intend to use cash-basis accounting. I will be taking payments using an online payment provider that will charge a percentage of the costs of the transaction as a handling/processing fee. Would this handling/processing fee be considered a bank charge and therefore fall under the £500 maximum that can be claimed towards interest and bank charges? The wording on the website seems to suggest that this maximum applies to charges that I incur through the use of my bank's services as a business (e.g. by using an overdraft), so I would like to confirm how these should be treated. Thank you very much in advance.
Posted Wed, 16 Aug 2023 18:16:06 GMT by HMRC Admin 25
Hi Emporium8610,
No, this doesnt come under this category.
You would claim these as other expenses.
You would need to declare the actual sale price of the items before this deduction as your turnover.
Thank you. 

You must be signed in to post in this forum.