With the ever increasing use of technology in business, HMRC are encouraging all taxpayers to pay their tax liabilities electronically.
This ’encouragement’ is moving a pace. December saw the end of using the Post Office as a means to pay HMRC. January 13 2018 also sees another milestone, the end of the acceptance of payments by personal credit card.
So why are HMRC introducing this change. Well, personal credit cards attract a charge on the organisation accepting the payment, in this case HMRC. Historically HMRC have charged taxpayers this additional cost. However new legislation which comes into effect on 13 January, prohibits merchants (including HMRC) from recharging associated fees back to customers.
HMRC can therefore only accept credit card payments on the basis that there is no cost to the public purse.
Corporate, business and commercial credit cards are not affected by the change in the legislation and can continue to be used to make payment to HMRC.
HMRC’s preferred method of payment is by Direct Debit, online or telephone banking or corporate debit/credit card.
For more information please contact Paul Chappell