Business News

HMRC Bans Credit Card Payments

Taxpayers will no longer be able to use their personal credit card to pay their annual tax bill from Saturday 13 January 2018.

HMRC is withdrawing this method of payment less than 3 weeks before its deadline for online tax returns – and any money owed for 2016/17 – by midnight on 31 January 2018.

Withdrawing this facility builds on the EU’s payment services directive, which bans companies – including the Revenue – from charging extra for using credit cards.

Last year, around 454,000 people used their personal credit card to pay their tax return worth a total of £741 million and £3.2 million in bank charges.

From 13 January 2018 onwards, individuals will be only be able to use the following methods to pay HMRC the tax owed:

  • over the phone (have your national insurance number to hand)
  • using CHAPS
  • at your bank or building society
  • via direct debit or cheque.

10.39 million self -assessment tax returns were filed ahead of 31 January 2017, with personal credit cards accounting for 0.8% of all payment methods and 0.2% of value.

For any help or advice with financial planning talk to RPD

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