Save for your tax bill this Christmas
28 November 2018, Christmas might be getting more expensive for some as this year many people are also having to save for the self assessment payment deadline in the New Year. ICAEW is reminding everyone that, as of 13 January 2018, HMRC no longer accepts personal credit cards.
Caroline Miskin, ICAEW Technical Tax Manager, said: “These changes, which came into place in just before last year’s payment deadline, mean that many people will have to save in advance for their tax bill, instead of relying on payment by credit card. This might come as a shock to those who paid by credit card last year in advance of the change. Not accepting personal credit card payments may make it more difficult for some people to pay but other options are available depending on individual circumstances.”
What payment methods can you still use?
There are a number of ways you can pay your self assessment tax bill including
- Online or telephone banking
- Debit card online
- Direct Debit
- BACS or CHAPS
- Cheque through the post or at a bank or building society
Caroline adds: “If you haven’t allowed for this change, don’t despair, there are other payment options you can use. If you have difficulty making payment is important that you contact HMRC at your earliest convenience so they can help advise on how to make payment.”
What payment options are available?
- Budget payment plan – it might be possible to arrange a budget payment plan with HMRC. To take advantage of this, you have to be up to date with payments when you set it up
- Time to pay arrangement – you can organise a time to pay arrangement with HMRC either by phoning the business payment support service on 0300 200 3835 or by using the online service. This is intended for one-off difficulties rather than a facility to be used every year. HMRC generally expects regular payments by direct debit over a maximum period of 12 months. It is important, where possible, to set the payment arrangement up within 30 days of the 31 January due date to avoid a 5% late payment penalty
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