Paying HMRC, Tagging accounts for iXBRL and SEIS forms

In our latest tax tips email for accountants we said:

This week we highlight three tax compliance issues which can trip-up taxpayers and tax advisers; how to pay HMRC, how to submit company accounts to HMRC, and when you need to use a specific form to claim tax relief. The approved methods for submitting payments and company accounts are changing in the next three months, so please warn your clients.

Below is just an extract from that email. To receive the full email when it is published each Thursday, simply follow the link on the right (or below, if you’re reading this on a mobile device)

Paying HMRC

An essential part of your tax return service is telling your clients how much tax they have to pay and by what deadlines. This year you should also advise clients to consider how they plan to pay their tax bill, for instance by; cheque, credit/debit card, or electronic transfer.

Taxpayers who normally pay their tax liabilities due on 31 January by personal credit card, will need to pay before 13 January 2018, as HMRC won’t accept payments by personal credit card after that date. Payments by corporate credit cards will continue to be accepted.

This change is required to comply with the EU Payment Services Directive 2, which comes into effect on 13 January 2018. This Directive prohibits all organisations who accept credit card payments, including HMRC, from recharging the associated fees back to their customers, or in this case – taxpayers. There are fees for paying by credit card which vary considerably according to the type of card used (see link to schedule).

Some taxpayers prefer to pay their tax by cheque, either by sending a cheque in the post with an appropriate payslip to HMRC, or by paying at a Post Office counter with a pre-printed payslip from HMRC.

The Post Office counter service is being withdrawn from 15 December 2017. This will particularly affect small companies who pay their corporation tax in this way, as HMRC’s official position has been not to accept cheques in the post for corporation tax, although cheques that arrive are usually cashed.

Taxpayers will still be able to pay their tax liabilities at a bank or building society branch by cash or cheque, but they need the HMRC printed payslip to do this. The facility to print a payslip still exists on HMRC archived pages (see below), but this DIY payslip can only be used for cheque payments sent by post, not those made by at the bank counter.