HMRC One to Many letters - Payment Processing Providers

HMRC are writing to businesses which use Payment Processing Providers (PPPs), asking them to ensure they correctly account for amounts received and fees charged in respect of these services, and to correct any tax compliance errors identified. 

Three letters are being issued by HMRC as part of this 'One to Many' campaign. The intention is to help businesses understand that PPPs may deduct their fees in different ways, and to ensure their financial reporting systems report the correct amounts for VAT and either Corporation Tax or Income Tax. 

With HMRC's permission we are sharing these letters as we understand they will not be copied to Agents.  Template versions of each letter can be found via the following links: Small Businesses, Mid-Sized Businesses and Large Businesses. For large and mid-sized businesses, a response is requested within 45 days.