Self-assessment: fewer ways to pay

There have been concerns raised over a ban imposed by HM Revenue and Customs (HMRC) on paying tax by credit card or via the Post Office.

About 11 million people complete a self-assessment tax return every year, with the deadline for online forms of 31 January approaching. Many of those result in an income tax or capital gains tax bill.

Payments at the Post Office were banned in December and the credit card option will be cut from 13 January.

The credit card payment option – used in 454,000 cases in 2016-17 – has been withdrawn because of an imminent change in the law which bans surcharges on Visa, Mastercard and American Express payments. HMRC has been charging up to 0.6% for payment by credit card, but would have had to foot the bill had it not banned this method of payment.

The tax due can still be paid by debit card, via a bank’s BACS, CHAPS or Faster Payments system, or by setting up a direct debit.

Employed people, who owe less than £3,000 on their tax bill, can pay it through their subsequent PAYE system, but only if they submitted their return online by 30 December 2017.

You will be charged penalties for late submission of your Tax Return. Don’t get caught out!

For all your tax needs, call us on 01604 662670.

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