HMRC no longer to accept credit card payments

Withdrawal of HMRC Personal Credit Card Payment in UK

Why has HMRC stopped accepting credit card payments less than a month before the self-assessment tax return deadline:

• Nearly 500,000 people paid what they owed in tax using a personal credit card last year.
• HMRC collected £12 million in commission from customers when they made their payment which they then paid to the credit card companies that process the card payments.

So why has HMRC stopped accepting payment by credit card?

The change is due to a European directive,which comes into force on13 January 2018 thatbans all companies, including HMRC, from charging customers a fee for using Mastercard and Visa credit cards; this includes retailers and traders.

What can the cash-strapped taxpayer do?

Payment can be made with a business credit card or via bank transfer or debit card. But anyone who planned to pay their tax bill on a personal credit card should either complete their tax return early before the deadline, or, as paying a tax bill by credit card is not recommended anyway, maybe use this as an opportunity to change behaviour! In 2018 aim to save 20% per month and put it aside to pay your tax bill.

However, meanwhile, the option to pay by personal credit card is causing quite a stir for cash-strapped individuals and businesses. HMRC seems to have made little effort to communicate this change – therefore we urge you to share this news with friends, colleagues, family members. Many a freelancer has taken to Facebook to post news of the change.

What can the cash-strapped taxpayer do?

Please contact your account manager if you’re likely to have difficulty paying your tax bill. DNS can help you organise finance if you are struggling to pay your taxes.

About the author

Sumit Agarwal
Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.