HMRC bans credit card tax payments

03 January 2018

Approximately 11 million tax payers will be in the process of completing their annual tax return for 2016-17 by the 31st January deadline. However, due to the ban on personal credit card payments, none of those taxpayers will be able to pay their tax liabilities by credit card.

Historically, tax payers were able to pay tax liabilities with credit card, however the ban is in response to new rules that will mean HMRC will no longer be able to pass on the bank charges for processing credit card payments.

HMRC sent out written warnings with tax bills this month stating “From 13 January 2018 HMRC will no longer accept payment by personal credit card…”

According to HMRC, personal credit cards only accounted for 0.5% of payments – in 2016-17 there were 454,000 personal credit card tax payments.

Debit cards and corporate credit cards continue to be accepted.