Taxpayers banned from using credit cards to pay personal tax bills

From 13 January 2018, HMRC will no longer be accepting payment of tax bills by personal credit card. Currently, HMRC is only allowed to accept credit card payments on the basis that there is no loss of public money, but new legislation means that HMRC will no longer be able to accept them. This will affect payments of income tax, PAYE and VAT.

The new EU Payment Services Directive 2 will prohibit all merchants, including HMRC, from recharging fees incurred when paying by personal credit card to the payee.

A HMRC spokesman said: “We will no longer be accepting personal credit card payments from 13 January as new rules mean that we can no longer pass on what our bank charge for processing a credit card payment. It would be unfair to expect other taxpayers to pick up this cost. 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.”

The change does not affect corporate, business and commercial credit cards. Personal and commercial debit cards will also still be accepted by HMRC.

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