Guidance

Withdrawal of personal credit card payments (CIP29)

Find out about the withdrawal of using personal credit cards to pay customs liabilities to HMRC.

Background

The EU Payment Services Directive 2 comes into effect on 13 January 2018. This new legislation removes the ability for merchants including HM Revenue and Customs (HMRC) to charge back fees for payments made by personal debit and credit cards to the customer. However, as HMRC doesn’t make a surcharge for debit card payments, this change only impacts personal credit card payments.

As a public funded body, HMRC is unable to absorb the cost of personal credit card fees as this would ultimately mean charging the fees back to customers through the public purse. It has been agreed that HMRC is unable to accept personal credit card payments from 13 January 2018.

Payment methods HMRC will accept from 13 January 2018

Depending on the type of tax being paid, payment methods include:

  • Direct Debit
  • Faster Payment
  • Bacs
  • CHAPS

In addition to corporate, business and commercial cards and debit cards which aren’t affected by the new legislation.

We recommend that customers making payments to us do so through our payment channels.

Corporate credit cards

Corporate, business and commercial cards aren’t affected by this change. However, customers will have to pay the credit card fee in addition to any tax paid.

What if you can only pay by personal credit card

If you find it difficult making a payment, other than with your personal credit card, you should contact HMRC at the earliest opportunity. In certain circumstances (depending on the type of tax you owe), we may be able to agree to a protracted payment.

Protracted payment

A protracted payment is an arrangement to pay over an agreed period of time. You can discuss this with the relevant HMRC department.

What will happen if you try to pay by personal credit card from 13 January 2018

It will be rejected and you’ll be required to pay by other means, except if it relates to a payment collected by Border Force at the UK border.

Personal credit card payments will still be accepted at the UK border for border related transactions. Exemption has been agreed due to the very small number of customers who will be unable to make alternative arrangements in the environment where they are making payment.

Commercial credit card rate charges from 13 January 2018

We’ll be updating the charges from that date to reflect the current rates charged by each scheme.

Contacts

If you require further information contact Carol Dicker by email: carol.dicker@hmrc.gsi.gov.uk on the Excise and Customs Law Team, or write to:

Excise and Customs Law Team
7th Floor SW
Alexander House
21 Victoria Avenue
Southend on Sea
Essex
SS99 1AA

Issued on 1 December 2017 by Customs Directorate, HMRC.

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Published 6 December 2017