Due to new EU regulations that prevent credit card charges being passed on to the consumer HMRC have announced that they will no longer accept credit card payments effective 13th January 2018. The new regulations were intended to help consumers by blocking retailers from adding processing fees to transactions often far in excess of the charges actually incurred. Over the past five years HMRC have recharged around £50m in credit card charges to cover their costs but following the rule change HMRC are unwilling to absorb the cost of these processing fees as it would mean effectively spreading the cost across all taxpayers including those who don’t pay by credit card.
With Self Assessment tax payments payable at 31 January those who rely on their credit card to pay their Self Assessment tax after a costly Christmas period are going to be one of the first to encounter difficulties as a result of this change.
What does it mean for me?
From 13th January 2018 HMRC will not accept any payments made by credit card so payments after this date will need to be paid via one of the other payment methods (visit their webpage to find out more):
Can I still pay HMRC by credit card before 13th January?
Until 12th January HMRC will continue to accept credit card payments so if you would find it difficult to pay by any other means we would strongly advise to make your payment early so as to beat the change in the rules. You’ll need to ensure that your payment is processed on or before 12th January otherwise you’ll be obliged to make a payment from a non-credit based method.