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HMRC stops accepting credit cards for tax bill payments

Self-employed workers in Gedling borough will no longer be able to pay their self-assessment tax bills with a credit card following new changes introduced by HMRC this week.

Taxpayers had previously been able to pay their tax bill with a personal credit card using their HM Revenue & Customs (HMRC) online account or with a paying-in slip if they still receive paper bills.

But now, sole traders and company directors are no longer able to use their own credit card to pay this bill.

Instead self-employed workers will now have to use a business credit card – which many will not have – or pay via bank transfer or debit card.

The Low Incomes Tax Reform Group (LITRG) has said it’s concerned that some people would struggle to find a way to pay in time, and that some could resort to taking out high-interest loans as they could not pay by credit card.

“Making payments may not be straightforward for some taxpayers, and we are keen to see that these changes are publicised as widely as possible,” said Anne Fairpo, who chairs LITRG.

“If making the tax payment will cause hardship, we strongly recommend people contact HMRC as soon as possible, and certainly before the due date of payment, to discuss their case.”

HMRC told the BBC letters have been sent as part of a marketing campaign signalling the changes.

An individual who already has a tax debt and is on a low income should visit the Tax Aid website, a charity that can offer assistance in suitable cases.

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