HMRC bans credit card tax payments from January

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If you were intending to pay off your tax bill with a personal credit card – this will soon no longer be an option. This is because the EU legislation which comes into effect from 13th January 2018 prohibits merchants (including the HMRC) recharging card fees back to the customer. 

In the past five years, HMRC charged taxpayers £50m to pay their taxes by credit card, the Telegraph Money found.

Taxpayers and virtual office customers who want to still use credit cards need to file their returns and pay their tax bills before 13 January 2018.

The HMRC has received criticism regarding the lack of notice, with written warnings being sent out alongside tax bills in late December 2017.

HMRC said: "We will no longer be accepting credit card payments from 13 January as new rules mean that we can no longer pass on what our bank charge for processing a personal credit card payment. There are a range of ways for people to pay us depending on the type of tax being paid, including debit cards, Direct Debit, Faster Payment and BACS."