The end of personal credit card payments to HMRC

HMRC have recently announced two changes which will affect how taxpayers will be able to make payments to them.

  • From 15 December 2017 it is now no longer possible to make payments to HMRC at a post office. The contract with Santander which allowed this method of payment expired on that date and Santander and HMRC have not reached agreement on a new contract. Where electronic payment is not possible, payments can still be made at bank branches (with a payslip) and payments for self assessment income tax can still be posted to HMRC.
  • Perhaps more importantly, HMRC will no longer accept payments by personal credit card after 12 January 2018.
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The reason for the change is that from 13 January 2018, the EU Payment Services Directive 2 prohibits merchants (including HMRC) from recharging associated fees back to customers. HMRC will not absorb the cost of credit card fees as this would be a cost to the public purse. Payments by debit card or corporate credit card will continue to be accepted.

The timing means that taxpayers who wish to pay their 31 January 2018 self assessment liabilities by personal credit card will need to make the payment by 12 January 2018 or use an alternative payment method.

To find full details about paying HMRC please follow this link