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Post Offices and personal credit cards can no longer be used to pay tax, warns local accountants

Taxpayers are being warned by local accountants Newby Castleman of two important changes to the way in which they can pay their tax bills.

As of tomorrow (Saturday 13th January), HMRC will no longer accept tax payments using personal credit cards and since 15th December it is no longer possible to make payments to HMRC at the Post Office.

The change to credit card tax payments is coming into effect because of legislation which prohibits merchants, including HMRC, from recharging associated fees back to customers. The reason for the change to Post Office tax payments is that the contract with Santander, which allowed this method of payment, has expired.

Annalise Lovett, Partner at Newby Castleman’s Loughborough Office, said, “Going forward, there will be two fewer methods for people to pay their tax bills, and we feel it is important to raise awareness of this, especially as the Self-Assessment payment deadline of 31st January is almost upon us, and these changes have not been widely publicised.

“Many people, particularly those without internet access, still use the Post Office to pay their tax bills, and personal credit cards were a regularly used payment method for anyone who might be struggling to find the funds to pay their tax. The fact that these two options will no longer be available could lead to some paying their tax late, with the danger of surcharges and interest being incurred.”

Annalise concluded, “Tax payments can still be made by debit cards, direct debit, faster payment and BACS, or by cheque through the post. Payments can also be made to HMRC at your bank or building society. However you choose to pay your tax it is important to plan ahead to ensure payments are made on time.

“For taxpayers who may be struggling to pay their tax bills, we would always recommend getting in touch with HMRC before tax actually becomes due in order to minimise penalties.”

Newby Castleman is one of the Midlands’ leading independent accountancy firms, with offices in Leicester and Loughborough. It offers a range of specialist financial services, business and tax advice for individuals and businesses. For further information, telephone the Leicester branch on 0116 254 9262, the Loughborough branch on 01509 263500 or visit the website at www.newbycastleman.co.uk.


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