Taxpayers can no longer rely on credit cards

George Hay Chartered Accountants

With Christmas festivities now done and dusted, there is now less than three weeks to go until the 31 January deadline for filing self-assessment tax returns.

Not only this but, effective tomorrow (13 January), HM Revenue and Customs will no longer accept tax payments made on a personal credit card. The use of business, commercial and corporate credit cards will, however, still be permitted.

HMRC’s decision follows the introduction of a new Government initiative, banning the practice of passing on credit card charges to consumers.

Figures show that in 2015-16, over 800,000 tax payments were made using a credit card and so the move is likely to have a significant impact on the 11m taxpayers currently preparing to file their returns and settle their 2016-17 tax liabilities.

Alternative methods of payment still available include, debit card, Direct Debits, Faster Payment and BACS.

Depending on the method you choose, the time it takes for your payment to reach HMRC will also vary, so ensure that you take this into account to avoid missing the deadline.

You should speak to your adviser or HMRC at the earliest opportunity if you anticipate that you may run into difficulties when it comes to paying the tax that you owe on or before 31 January.

If you are not already one of the thousands of people who let an accountant handle their self-assessment tax return, why not contact me or one of the team to discuss your circumstances in more detail on 01767 315010, or visit www.georgehay.co.uk.

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