From January, individual taxpayers will not be able to use personal credit cards to settle tax bills with HMRC. HMRC accepted payment methods will have to be made by direct debit, debit card or electronic payments – Faster Payments, BACS or CHAPS. Corporate, business and commercial cards are not affected by the new legislation.
HMRC will stop accepting personal credit card payments from 13 January 2018. If you are planning to pay your tax bill on your credit card, you will need to make the payment before that date. This means your tax liability must be calculated by 12 January 2018 to enable you to pay the right amount.
Any payments via personal credit card received after 12 January 2018 will be rejected and payments will have to be made by debit card or other electronic methods instead.
Private client advisor Yogi Dhanak says: ‘If you are planning to pay your tax bill by personal credit card, make sure your tax advisor has everything they need to calculate your liability as soon as possible.’
For advice or information on tax returns or HMRC accepted payment methods, contact your usual WMT’s Yogi Dhanak.