From 13 January 2018, HMRC will no longer accept payments made from personal credit cards. This includes payments for income tax, PAYE, VAT and other taxes. 
This change is due to the introduction of the EU second Payment Services Directive, which comes into effect on the same date. This legislation prohibits merchants, HMRC included, from recharging to the payee the fees incurred when paying by personal credit card. HM Revenue and Customs (HMRC) charged £50m in credit card fees charged to taxpayers that have had to pay their outstanding tax bills on credit over the last five years. 
 
A HMRC spokesman said: "We will no longer be accepting personal credit card payments from the 13 January as new rules mean that we can no longer pass on what our bank charge for processing a credit card payment. It would be unfair to expect other taxpayers to pick up this cost. There are a range of ways for people to pay us depending on the type of tax being paid, including debit cards, Direct Debit, Faster Payment and BACS." 
 
Corporate credit cards, personal and commercial debit cards will be accepted by HMRC. 
 
Planning note 
The first payment that this is likely to affect will be your 31 January 2018 self-assessment payment. If you intend to make this payment by personal credit card, you will need to do so before 13 January 2018. 
 
HMRC is also removing the option of making a payment through a Post Office from 15 December 2017 
Share this post:

Leave a comment: