Taxman bans customers from paying by personal credit card

 HM Revenue and Customs plans to ban customers from using their personal credit cards to pay their tax bills.

Disclosed less than a month before the deadline for submitting and paying self-assessment tax returns, the move has been branded a “customer unfriendly approach”.

More than 450,000 people paid their taxes using a personal credit card last year, with HMRC taking £12million a year in commission. However, a European directive which comes into effect on Jan 13 prevents all companies, including HMRC, from charging customers a fee for using Mastercard or Visa credit cards.

Andrew Snowdon, a partner at UHY Hacker Young accountancy group, told The Times: “It beggars belief that HMRC would take such a customer unfriendly approach.

“Using a credit card may be the only way some taxpayers can afford to pay their tax bills.”