Credit Card DOUBLE TAX for 1 year (ryanair)

goz83

Hi Guys,

I signed up for a Ryanair Visa Credit Card earlier this year. After having a couple of issues with customer services, I decided to pay the balance off in full and cancel my card two days ago. I paid in the post office to the last cent and rang them with the receipt number, this is supposed to process payment immediately as far as i'm aware. No...it still takes 3 working days I am told and the interest is calculated until that happens, so I will have to pay whatever interest accrues until then. I am fine with that.

However, the representative went on to tell me that the €30 government duty will then be added to the bill. "Haven't I already paid the govt duty?" I asked. "Yes" says the rep, and goes on to say that the govt backdate the charge by a year and are charging me for 2009 even though I got the card this year and obviously have it less than 1 year, so should therefore only be charged for 1 year. That's like buying a brand new car and being charged for 2009 road tax before you can tax the car for the next 12 months....CRAZY! I mentioned I would just pass the details onto my accountant and she was off the phone quicker than you could say "boo".

My question: What the F*** was she talking about? This charge does not sound legit and can they pull this one off? They have raked in plenty of interest because of an error they made and I don't plan on giving them another cent more than I need to. Any suggestions?

91011

Maybe google it before ranting and all the information will come up in front of you.

http://www.citizensinformation.ie/categories/money-and-tax/tax/duties-and-vat/stamp-duty-on-financial-cards

Tax year for credit cards is april 2nd to April 1st. So if you have a card for 2 weeks from last week of March to first week of April you ahve to pay 2 years tax.

As for the person who got off the phone after you threatend them with you "accountant" - I'd do the same. - As I can imagine that you were shouting down the phone and unwilling to listen to anythign or to look for the real explanation.

p.s. The card is issued by MBNA and its the revenue commissioners who charge the duty. So if you REALLY want to talk to the right person instead of bullying a call centre staff member on the phone ring your local tax office.

goz83

91011 wrote: »

Maybe google it before ranting and all the information will come up in front of you.

http://www.citizensinformation.ie/categories/money-and-tax/tax/duties-and-vat/stamp-duty-on-financial-cards

Tax year for credit cards is april 2nd to April 1st. So if you have a card for 2 weeks from last week of March to first week of April you ahve to pay 2 years tax.

As for the person who got off the phone after you threatend them with you "accountant" - I'd do the same. - As I can imagine that you were shouting down the phone and unwilling to listen to anythign or to look for the real explanation.

p.s. The card is issued by MBNA and its the revenue commissioners who charge the duty. So if you REALLY want to talk to the right person instead of bullying a call centre staff member on the phone ring your local tax office.

I find that the information here from users is usually very helpful. Google churns up pages of irrelevant info and takes time to scroll through, so i often come here for info. Thanks for clearing that up with the double charge, I still think it's ridiculous though. And no, I was not shouting, nor did I even raise my voice. What I found impossible to believe was when she said "even if you have a credit card for one day, they charge you for 2 years tax". It was at that point I mentioned (not threatened) that I would just pass the details to my accountant. I listened to everything she said and did not interrupt her once. Thanks for the info, but maybe next time you could tone it down, or just not respond at all.

jor el

goz83 wrote: »

What I found impossible to believe was when she said "even if you have a credit card for one day, they charge you for 2 years tax".

You're only ever charged for 1 years tax, but you pay at the end of the year. If you go 1 day into the following year when you cancel your card, then you'll be paying for last year and the current year at the same time, hence 2 years payment.

goz83 wrote: »

It was at that point I mentioned (not threatened) that I would just pass the details to my accountant.

That would be a waste of your time and more money. An accountant can't get around the fact that this is a government levy that you must pay. There is no way to avoid it.

goz83 wrote: »

Thanks for the info, but maybe next time you could tone it down, or just not respond at all.

But then you wouldn't have your answer.

goz83

jor el wrote: »

You're only ever charged for 1 years tax, but you pay at the end of the year. If you go 1 day into the following year when you cancel your card, then you'll be paying for last year and the current year at the same time, hence 2 years payment.



That would be a waste of your time and more money. An accountant can't get around the fact that this is a government levy that you must pay. There is no way to avoid it.



But then you wouldn't have your answer.

very true. Thank you. After looking into it and now just seeing your post, I see where the double tax comes in. I had the card from feb until now, so i get charged 2009 and 2010. However, if i had only kept the card for say a month (or a day), then I would not have fallen into the new tax year and would have only been liable for 1 year. I suppose I will just put the extra €30 into the bill and call it a day. Their customer care is terrible though and it takes forever for them to admit if they are in the wrong (if at all). Safe now to close this thread I think.

91011

goz83 wrote: »

very true. Thank you. After looking into it and now just seeing your post, I see where the double tax comes in. I had the card from feb until now, so i get charged 2009 and 2010. However, if i had only kept the card for say a month (or a day), then I would not have fallen into the new tax year and would have only been liable for 1 year. I suppose I will just put the extra €30 into the bill and call it a day. Their customer care is terrible though and it takes forever for them to admit if they are in the wrong (if at all). Safe now to close this thread I think.

and if you get another card this year from another provider you won;t have to pay the tax again

wyndham

91011 wrote: »

and if you get another card this year from another provider you won;t have to pay the tax again

Eh, yes you will. Stamp duty is levied per card, unless they are from the same account.

The charge is for each account. An individual can have additional cards issued on his/her account without paying extra duty. Companies that have a number of cards on one account must pay the duty on each card.

91011

wyndham wrote: »

Eh, yes you will. Stamp duty is levied per card, unless they are from the same account.

If you close one account with one provider and open an account with another provider only one stamp duty charge is applied.

It was changed almost 2 years ago after complaints that the imposition of stamp duty on a card that was switched prevented people from switching to better value credit cards.

If you have 2 credit card account at the same time you will have 2 x stamp duty though