Can I pay my tax bill by credit card?

I would like to settle my tax bill soon but money is tight and I don’t think I’m going to pay it in full. Can I pay it by credit card? 

1st January 2018

Yes you can pay HM Revenue & Customs using a credit card. But from 13th January 2018 it will not be possible to pay HMRC using a personal credit card.
The timing of this change coincides with the date from which HMRC will no longer be permitted to charge fees for payment by credit card.
Once you've calculated your tax bill, try to decide before the deadline passes. This will then allow you a couple of options:
  1. If you have tax deducted at source, for example from wages or a pension, you could opt to have the balance collected through your tax code in the next tax year. However, you would need to complete your tax return before 30th December. 
  2. Arrange a payment plan with HMRC’s Business Payment Support Service. HMRC would still charge interest on any outstanding amounts but they should waive any late payment penalties
Whatever your situation, make sure you pay as much as possible as soon as possible. This should keep the interest and late payment penalties as low as possible.
If you’re struggling to keep on top of your tax affairs and cashflow, your local TaxAssist Accountant would be happy to help. Please contact us to be put in touch with your local office. 

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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