Business owners will not be able to use personal credit cards to settle outstanding PAYE late payment penalties, PAYE settlement agreements or Construction Industry Scheme (CIS) late filing penalties from January 2018

HMRC has confirmed that employers will not be able to pay PAYE penalties with a personal credit card from 13 January 2018. It will continue to accept payments by company credit card or debit card, as well as BACS payments.

All payments must include the 14 or 15 character payment reference that begins with X and is on the payslip. Payments may be delayed if the wrong reference is used.

It will also not accept part payments by credit or debit card so any employers who are unable to make full payment by card will have to pay a different way, through telephone banking, CHAPS or Bacs using sort code 08 32 10, account number 12001020 via HMRC Shipley account.

Faster payments (online or telephone banking) usually reach HMRC on the same or next day, including weekends and bank holidays. CHAPS reach HMRC on the same working day if paid within bank’s processing times while Bacs payments take three working days.

The slowest way to pay is via direct debit which takes five working days to arrive. HMRC also charge a fee for credit card payments.

The facility to pay HMRC through a Post Office will be withdrawn from 15 December 2017.

HMRC will accept payment on the date made, not the date it reaches HMRC’s account (including bank holidays and weekends).

HMRC limits the number of credit and debit card payments that can be made to any single tax regime within a given period of time, so that only a reasonable number of payments can be made.

The definition of what the actual limit on number of payments is vague.

The HMRC guidance states that the tax authority ‘will decide what is reasonable by checking payment card industry standards and guidance and may withdraw the facility to pay by credit or debit card from any customer who tries to bypass the limit’.

HMRC Guidance, Pay other HMRC taxes, penalties or enquiry settlements