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HMRC to stop accepting personal credit cards

From 13 January 2018, HMRC will no longer accept payments made from personal credit cards. This includes payments for income tax, PAYE and VAT, amongst others.

This change is due to the introduction of the EU Payment Services Directive 2, which comes into effect on the same date. This legislation prohibits merchants, HMRC included, from recharging to the payee the fees incurred when paying by personal credit card. As HMRC are currently only allowed to accept credit card payments on the basis that there is no loss of public money, it means that HMRC will no longer be able to accept personal credit cards.

Corporate, business and commercial credit cards will not be affected by this legislation. Personal and commercial debit cards will also still be accepted by HMRC.

Alternative payment options include direct debit, Faster Payment, BACs, debit card and CHAPs.

Please be aware that the first payment that this is likely to affect will be your 31 January 2018 self assessment payment. It is important that you are prepared to make your payment by the deadline. If you intend to make this payment by personal credit card, you will need to do so before 13 January 2018.

A further point to note is that HMRC is also removing the option of making a payment through a Post Office from 15 December 2017. 

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