HMRC is stop accepting credit card payments… and some self-employed workers are angry
From January 13, sole traders and company directors will no longer be able to use their own credit card to pay their self-assessment tax bill
SELF-EMPLOYED workers will no longer be able to pay their self-assessment tax bill with a personal credit card - and some people are pretty p*ssed off.
Under current rules, taxpayers can pay with a personal credit cards using their HM Revenue & Customs (HMRC) online account or, if you receive paper statements, with a paying-in slip.
The credit card charges ranges from 0.374 per cent to 2.406 per cent, depending on whether it is a personal or corporate card.
But from January 13, sole traders and company directors will no longer be able to use their own credit card to pay this bill.
Instead they'll have to use a business credit card - which many will not have - or choose to pay via bank transfer or debit card.
Frankie Tortora, founder of freelancing digital magazine Doingitforthekids.net, says she believes that the changes will take many self-employed professionals by surprise.
“My fear is that a lot of people will be panicking come January,” she said.
“As much as we all work hard to ensure we’re on top of our cashflow, freelance life is inherently unpredictable and there will be situations where things just don’t go to plan.
"Removing the option to use a personal credit card will cause a lot of problems for a lot of people and, as far as I can tell, HMRC have made zero effort to communicate this change.”
Lots of freelancers have taken to Facebook groups and forums to post about the change.
The new rule comes into effect on the same day as the Government introduces a ban on credit and debit surcharges in the UK.
From January, retailers and traders will no longer be allowed to charge consumers for paying on plastic when making a purchase.
An HMRC spokesperson said: “We will no longer be accepting credit card payments from 13 January as new rules mean that we can no longer pass on what our bank charge for processing a credit card payment.
“It would be unfair to expect other taxpayers to pick up this cost. There are a range of ways for people to pay us depending on the type of tax being paid, including debit cards, Direct Debit, Faster Payment and BACS.”
If you had plans to pay your tax bill with your personal credit card, try to complete your tax return early, to make payment before the deadline.
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