When it comes to paying HMRC, many individuals with tax payments to make at the end of this month, need to be aware that HMRC have announced that they will no longer accept payments made at the Post Office or by credit card.

HMRC have announced that with effect from 15 December 2017 it will no longer be possible to make payments to HMRC at a post office. The reason for this change is that contract with Santander, which allowed this method of payment, has expired. HMRC are advising that where electronic payment is not possible, payments can still be made at bank branches using a payslip and payments for self assessment income tax can still be posted to HMRC.

No More Paying HMRC by Card

From 13 January 2018 it will no longer 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.

Self Assessment Tax

Self assessment tax can be paid at the bank but only if:

  • the taxpayer still gets paper statements from HMRC; and
  • the taxpayer has the payslip issued by HMRC.

Direct Debit

Taxpayers can set up a direct debit through their HMRC online account to pay the following taxes:

  • Self assessment
  • Employers’ PAYE and national Insurance
  • Construction Industry Scheme (CIS) deductions
  • VAT
  • Corporation tax,
  • Machine games duty,
  • Miscellaneous payments (with a payment reference beginning with ‘X’).

Except for VAT, for which continuous direct debit authority can be set up, they will have to set this up as a single payment, so the process will need repeating each time they want to make a payment. Agents cannot do this for their clients.

Internet link: ICAEW blog