Changes to the way you can pay your Self Assessment tax bill
Please note that from 13 January 2018 it will no longer be possible to settle a self assessment bill with a personal credit card. Debit cards and corporate credit cards continue to be accepted. For more information on how to pay your Self Assessment tax bill, please follow the link below.
Important changes to the way customers can pay HMRC
HMRC are making changes to the way customers can make payments to them.
From 15th December 2017 the pay at the Post Office service will be withdrawn and from 13th January 2018, HMRC will no longer be accepting payment by personal credit card.
Debit cards and corporate credit cards will continue to be accepted.
Payments can still be made via:
Online or telephone banking
Debit/corporate credit card
HMRC reveal the top tax scams that are catching people out
HMRC has listed examples of the websites, emails, letters, text messages and phone calls used by scammers to obtain your personal information.
Rise in number of high earners caught in 60% “tax trap” predicted
Projections have shown that the number of high earners caught in a hidden 60% "tax trap" is set to double by the end of the next tax year.
Under rules announced in 2010, personal allowances are reduced by £1 for every £2 adjusted net income rises above £100,000 a year. Individual’s lose their tax-free personal allowance and face a marginal rate of 60 per cent on earnings between £100,000 and £123,000.
Data from the Institute for Fiscal Studies has shown that at least £800,000 people will be affected this year, up from 588,000 in 2010-11. It is expected that a million people will be affected by the end of the next tax year.
This is due to wage inflation raising incomes above the tax threshold and the tax band widening in line with the increasing tax-free personal earnings allowance.
As an example, the allowance has risen from £6,475 in 2010 to £11,500 today. This has resulted in the upper limit of the band in which 60 per cent tax rising from £112,950 to £123,000.
People earning above £123,000 lose 100 per cent of their personal allowance.
Tina Riches, partner at accountancy firm Smith & Williamson, said: “This tax band is rarely flagged up by the Government and political parties, yet it is one of the highest rates of tax we have in this country.
People don't understand how it works or its effects because its conveniently described as 'losing your personal allowance, which is very confusing."