Can I pay my tax bill with a credit card?

Paying off your Self Assessment tax bill with a personal credit card sounds like a fairly simple process, with card transactions becoming the main way to pay for anything in today's society.

Unfortunately, back in January 2018, HMRC announced they were no longer supporting payments from a personal debit card because of EU legislation that prohibited merchants (including HMRC) from recharging associated fees back to customers. 

Since 2018, we’ve been able to enjoy toll-free use of our credit cards when making purchases in shops, while small business owners have had to sacrifice being able to settle their Self Assessment with their credit card.

What did HMRC say about removing the credit card option?

HMRC sent our written warnings, alongside tax bills in December 2018 declaring:

“From 13 January 2018 HMRC will no longer be accepting payments made from personal credit cards… Corporate, business and commercial credit cards are not affected by this change and HMRC will continue to accept personal and commercial debit cards.”

While personal credit cards reportedly only accounted for 0.8% of payments to HMRC in 2016/17, there were concerns that the move away from personal credit cards could be a troublesome announcement for those who rely on borrowed money to pay their tax bill.

What should I do if I was planning to pay my tax bill by credit card?

If you don’t have the cash to pay, file the Self Assessment as soon as possible and contact HMRC about setting up a payment plan.

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At Crunch, we’re experts at looking after life’s numbers, so you can trust us to make your Self Assessment as worry-free as it can be. Our expert chartered accountants will take care of you, just like we did for over 7,500 clients in the last tax year. To find out more about our Self Assessments service, visit our website today.