How to pay your tax bill after the HMRC credit card changes
15 May 2019
If you are one of the many thousands of self-employed due to pay your Self Assessment Tax there’s a big payment change that you need to be aware of.
Can you pay your tax bill with a credit card?
Previously, up to 800,000 people paid their tax bill via credit card, however a change introduced in 2018, means HMRC no longer accept payments from personal credit cards.
The change is mainly due to the level of fees imposed on such transactions, though debit cards and corporate credit cards will still be accepted. This change also extends to payments made for VAT as well as Self Assessment Tax.
However, it leaves many who previously relied on paying by credit card with a large bill to pay and needing to look for alternative payment options to spread the cost.
Self-employed? Pay your tax bill with a short term business loan
Finding a way to pay your tax bill can be hard when a significant sum needs to be found from business cash flow and as such, spreading the cost is an increasingly attractive option for many.
A short-term loan from White Oak UK lets you make tax more manageable, providing you with funding to cover the full cost of tax, be that personal tax, corporation tax or VAT, over a 3-12-month term.
Funds can be repaid on a fixed number of installments, giving you the peace of mind that your tax bill is covered on time, avoiding any potential charges for non-payment.
At White Oak UK, we make money work for business and last year alone, we provided businesses and self-employed individuals with over £50million in loans to cover personal tax obligations.
- Unsecured loans from £2k – £500k
- Fixed payments over 3-12 months
- Simple to apply, no red tape
- We accept 4 out of 5 applications
- Funds in your account in as little as 24 hours
- We’re rated a 5 star Gold Trusted Service
Get a free finance quote for your tax bill
Act now before the deadline
Whilst over 93% of tax payers filed their tax on time earlier this year, there were still more than 700,000 who missed the deadline.
So if you are one of the many thousands of self-employed people due to pay your Self-Assessment Tax by July 31st then now is the time to start considering not just completing your return, but crucially, how you will cover this considerable cost.
Every year, HMRC release their top excuses for late or non-submission of tax returns, from broken boilers to being too short to reach the post box, but in all seriousness, avoiding late return penalties by completing on time and also arranging the funds to cover this expense in advance, can help to lighten the tax burden.
Self-employed? Be aware of ‘Payment on Account’
There is also the subject of payment on account, a little talked about, but nonetheless critical consideration for those perhaps newer to self-employment and applicable to anyone whose self-assessment bill is more than £1000.
Whilst 50% of this payment on account may have been settled alongside the January tax deadline, the second instalment of this may also be due by 31st July (for more details on HMRC accepted payments and payment on account, please speak to your accountant).
The result for many, newly self-employed people is that they typically face a tax bill which is roughly 50% higher than they had been expecting.