Updated for 2019
In 2015/16, 814,261 people paid their tax bill by credit card. This was up from 493,722 credit card payments in 2014/15.
However, HMRC no longer accepts credit card payments. So if you’re looking to pay your tax bill for the 2017-18 tax year, you’ll need to do so using a different method.
Self Assessment taxpayers need to pay their 2017-18 tax bill by 31 January 2019. Read more about the tax return deadlines.
- The complete guide to Self Assessment tax returns for the self-employed
- What can I claim as self-employed deductible expenses?
- What the debit and credit card surcharge ban means for small business owners
- Why do I need business insurance?
Paying HMRC by credit card
HMRC no longer accepts payment by personal credit card. They accept payments by corporate credit card, although there is a fee.
Why can’t you pay taxes with a credit card?
As part of an EU directive aimed at increasing transparency and fairness around consumer payments, the government introduced a crackdown on merchants charging fees for card payments.
The practice was outlawed from 13 January 2018, in a move the government said could save consumers around £473 million a year.
But this backfired for HMRC. Because card providers can still charge merchants for accepting card payments, merchants have to absorb those costs themselves.
HMRC said it would need to charge those costs back to taxpayers via the public purse, creating an extra burden for taxpayers – so it banned personal credit card payments altogether.
How can I pay my tax bill?
Taxpayers can still pay using debit cards, Direct Debit, Faster Payment, BACS, CHAPS, cheques, and in branch at a bank or building society. Keep in mind the time you need to allow for HMRC to receive the payment depends on how you choose to pay.
|Payment method||Time needed|
|Online or telephone banking||Same or next day|
|CHAPS||Same or next day|
|Debit or corporate credit card online||Same or next day|
|Bank or building society||Same or next day|
|BACS||Three working days|
|Direct Debit (if previously set up with HMRC)||Three working days|
|Cheque in the post||Three working days|
|Direct Debit (if not set up with HMRC before)||Five working days|
Gather your paperwork, log in online using your Government Gateway user ID and password, file your tax return, and pay your tax bill by 31 January.
Does the ban on paying your tax bill by credit card affect you? Let us know in the comments below.
Looking for self-employed insurance?
With Simply Business you can build a single self employed insurance policy combining the covers that are relevant to you. Whether it’s public liability insurance, professional indemnity or whatever else you need, we’ll run you a quick quote online, and let you decide if we’re a good fit.