Keeping you up to date on the latest accounting and tax issues

How you pay HMRC is set to change

Due to a decline in demand for the service, from 15 December 2017 it will no longer be possible to make Tax/NIC payments at the Post Office via the Transcash system.

Ultimately, HMRC would like to see everyone move to electronic systems; they boast speed, ease of use and are much more secure. Electronic payments, made online or by phone, cannot be misplaced or intercepted. Furthermore, they will be reflected in your accounts far quicker than would be the case with most other methods.

Prepare to change the way you pay HMRC

For those of you already using alternative methods of payment, this change will not present such a problem. However, for those still using the Transcash service, you must prepare to change the way that you pay HMRC.

Preparation is particularly key for anyone who also tends to leave paying any Self-Assessment (SA) tax due until the January deadline.

Alternative methods of making payment include:

  • Direct debit
  • Online/telephone banking (Faster payment, BACS & CHAPS)
  • Debit card payments via phone or online

When paying by any of the above means, be sure that you are using the correct reference/s. This will help to ensure that payments can be allocated correctly.

Where electronic payments are not possible, you will still be able to make payments at bank and building society branches, with a payslip, whilst Self-Assessment Income Tax payments can still be posted direct to HMRC.

More information about the ways you can pay HMRC can be found on the GOV.UK website.

In addition to this, from 13 January 2018 HMRC will no longer accept payments made using personal credit cards. This coincides with new rules which take effect on the same date, meaning merchants (including HMRC) are no longer allowed to recoup the costs associated with accepting and processing these payments, from the customer.

Corporate and business credit cards will, however, be exempt from these changes.

How can George Hay help?

If you’re concerned about making the switch to an alternative method of payment, or worried about how this will affect you ahead of the Self-Assessment deadline in January contact your usual adviser or HMRC direct. Alternatively, if you’re not currently working alongside an adviser and you’d like advice on your SA obligations or assistance with preparing your return, we can help. To find out more contact us today on 01767 315010 or fill in one of our online enquiry forms here.

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