Manager at Whitley Stimpson, Ian Parker, informs that H.M. Revenue and Customs last week announced that from 13th January 2018 individuals will no longer be able to pay their tax bill by personal credit card.
Previously H.M. Revenue and Customs have accepted credit card payments from individuals but this method of payment will no longer be available starting early in the new year.
This change in policy has apparently been forced by the recent changes to EU law which will prohibit merchants, including H.M. Revenue and Customs, from recharging credit card fees to personal payers. As they are currently only permitted to accept credit card payments on the basis that there is no cost to the public purse this new law means that it cannot continue with this policy.
The date of this change is just over two weeks from the payment deadline for paying your Self-Assessment tax liability and therefore, this may catch out a large number of individuals who have not paid their liability by 13th January.
It is therefore important that individuals who would usually pay their tax bill by credit card get their tax return finalised and submitted so that the tax liability can be paid by credit card before 13th January or make sure that they have alternative payment arrangements in place by 31st January to avoid unnecessary penalties and interest.
It is worth noting that these changes only affect personal credit card payments. Individuals who pay their tax liability using a business credit card will continue to be able to do so.
Full details of the various payment methods that H.M. Revenue and Customs will continue to accept can be found on their website www.hmrc.gov.uk.
If you would like to discuss these changes then please do not hesitate to contact Ian Parker by telephone on 01295 270200 or via email at ianp@whitleystimpson.co.uk