Can I pay my tax bill with a credit card?


For whatever reason some people would like or need to pay their tax liability by credit card.  It can help spread the payments or free up cash that is needed elsewhere in your business.

Up until now you have been able to do so.  However from 13th January 2018 HMRC will no longer be accepting payments from personal credit cards.  Corporate, Business and Commercial credit cards are not affected and you will still be able to make payments by debit card.

What's the reason for this? - You might have heard on the news that there has been a change in EU law regarding merchants passing on the cost of credit card fees to the consumer, from 13th January 2018 they are no longer allowed to.  And it is good news really for all consumers.. but not if you wanted to pay your tax bill by personal credit card...

Within the change in EU law HMRC are also included as 'merchants' so they are not allowed to pass on the credit card charges to the consumer.  Currently HMRC is only allwed to accept credit card payments on the basis that there is 'no cost to the public purse' so this new law will mean that HMRC cannot accept credit card payments from the date the law changes.

So if you are intending to pay your tax bill by credit card you have until 13th January 2018 to do so.  This ultimately means that you cannot leave your self assessment until the last minute.  You will need to do your self assessment in good time so that you know what you owe and can pay what you owe by 13th January 2018. Don't be caught out unexpectedly and wait until 31st January 2018 to make your payment as you will not be able to make it by personal credit card.