Five card protection traps to be aware of
If you use a credit card, you should know about Section 75 of the Consumer Credit Act 1974.
The legislation means your credit card provider and a retailer or service provider are ‘jointly and severally’ liable for any breach of contract or misrepresentation by the retailer.
1) The £100 threshold
For a claim to be valid, the item or services must cost more than £100 and less than £30,000.
2) Claims made by secondary cardholders
If a purchase is made by the secondary cardholder, and the primary cardholder doesn’t benefit from the purchase, then Section 75 won’t apply.
3) Purchases made through third-party sellers
For example, if you buy flights through a travel agent and the airline goes out of business before you take your trip, you may not be able to turn to your credit card provider, as the payment for the flights was to an intermediary, which is not providing the service itself.
4) Purchases made via a third-party payment processor, e.g. PayPal
5) Buy now, pay later purchases (BNPL)
More than a third of UK shoppers have used buy now, pay later (BNPL) services to spread the cost of purchases, according to the credit reference agency Equifax.
BNPL schemes don’t qualify for Section 75, so you won’t be able to get a refund from your credit card provider if something goes wrong with a purchase.
Don’t miss out on a tax refund
HMRC is urging employed workers to make sure they don’t miss out when they claim a refund on work-related expenses.
More than 800,000 taxpayers claimed refunds for work expenses during the 2021/22 tax year.
Although the average claim was £125, over 70% of claimants missed out on getting the full amount they were due.
Number of early self assessment filers doubles
The number of self assessment taxpayers filing their tax return on the first day of the tax year has more than doubled since 2018, HMRC has revealed.
More than 77,500 customers submitted their tax return for the 2022/23 tax year on 6 April 2023, compared to almost 37,000 customers on 6 April 2018.
The deadline to file tax returns for the 2022/23 tax year is 31 January 2024 and customers have been able to submit theirs since the start of the new tax year.
HMRC says that by completing their self assessment return early, customers avoid the stress of last-minute filing – something which encouraged more than 860,000 customers to file their tax return for the 2021/22 tax year on 31 January 2023.