HMRC is withdrawing the option to use a personal credit card to pay for tax returns, with the deadline for online submissions rapidly approaching.
The Revenue is withdrawing this facility on 13 January 2018, just weeks before any money owed for 2016/17 is due by midnight on 31 January 2018.
HMRC will continue to accept payment from business credit cards after 13 January 2018, although higher transaction fees will apply.
Withdrawing this method of payment builds on the EU’s payment services directive, which bans companies – including the Revenue – from charging customers extra to pay with their credit cards.
HMRC will continue to charge taxpayers a fee, ranging from 0.374% to 2.406%, until the cut-off date.
Last year, around 454,000 people used their personal credit card to pay their tax return, netting the Revenue £12 million.
Other payment options include:
- paying over the phone (have your national insurance number to hand)
- using CHAPS
- paying at your bank or building society
- paying via direct debit or cheque.
10.39 million self-assessment tax returns were filed ahead of 31 January 2017, with the figure set to rise again in line with an increase in the number of individuals registering as self-employed.
But if you’re taking on the task this late in the day, you should be aware you’ll get a £100 penalty if you submit your online tax return or pay your bill after 31 January 2018.
If you would like to discuss the upcoming tax return deadline, or you would like to speak with a member of our team, please contact a member of our tax team on 01772 821021.