Changes in how to pay your tax bill

There are two changes to how HMRC accepts payments this month and next which will affect some businesses. If you make payments at the Post Office, or use a personal credit card to meet your business, or personal, tax liabilities, you will need to use an alternative method to settle your tax bills in future.  

Withdrawal of Post Office Payments 

From 15 December 2017, it will no longer be possible to make payments to HMRC at the Post Office using Transcash.  

As explained during a recent HMRC Talking Points, the Transcash service, which was run by Santander, is no longer accepting paper-based transactions.  This means that HMRC payslips can no longer be used at the Post Office.  HMRC has not been able to find another provider for the service, so the Post Office payment facility will cease at that point.

Businesses using the Post Office to settle their PAYE or Corporation Tax liabilities will need to use another method of payment.  There are a number of options, including direct debit, Faster Payment, BACs, debit card and CHAPs.  Guidance on ways to pay HMRC can be found here.  

Please note it is not possible to pay Corporation Tax by cheque.  

Changes to Credit Card Payments 

From 13 January 2018, HMRC will no longer be able to accept payments on a personal credit card.  This is as a result of changing legislation which means that HMRC will no longer be able to recharge the fees from a credit card transaction back to the taxpayer.  Equally, HMRC cannot meet the fees itself as that would create a cost to the public purse.  

Corporate, business and commercial credit cards and debit cards are not affected by this.  Again, alternative payment options including direct debit, Faster Payment, BACs, debit card and CHAPs remain available. 


Posted in: Employment