Can I pay my tax bill with a credit card?

Image of a person paying online with a credit card.

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    Paying off your Self Assessment tax bill with a personal credit card sounds like a fairly simple process, what with card transactions officially displacing physical currency as the UK’s most popular way of paying for things.

    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, but small business owners have had to sacrifice the convenience of settling their Self Assessment with their credit card.

    Jargon-free Self Assessment guide

    What did HMRC say about removing the credit card option?

    Despite criticism regarding the lack of notice, written warnings from HMRC were sent out alongside tax bills in late December 2017 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.

    We take the pain out of Self Assessments

    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 certified accountants will take care of you, just like we did for over 7,500 clients in the last tax year.

    Don’t forget to check out our online accountancy software page for more information on our unique blend of state-of-the-art online accounting software and real human beings, which means you can access your accounts and the advice you need whenever and wherever you need it.