Can I Pay my Tax Bill with a Credit Card?

pay taxes with credit cards

Are you heading towards the time of the year that is bringing your tax liabilities closer? You must be wondering about choosing an easier way to pay your tax bills if you have heard about paying taxes using your credit cards. It is imperative to know here that there are certain rules shared by HMRC that will limit your expectations. Previously the procedure for using a credit card for tax payments was different. However, back in 2018, HMRC banned the use of personal credit cards for paying the tax. Wondering how to pay taxes with credit cards? Well, the limitation does not mean that there is no way out to pay tax through a credit card at all. HMRC has banned only personal credit cards.

However, corporate credit cards and debit cards are still allowed for this purpose. In response to the new rules, the options that are accepted by the tax authorities are telephone banking service, online banking service, and direct debit. Further, this comprehensive guide will let you gather information about what is the HMRC set of rules about tax payments with credit cards, what is the way to pay taxes, the limitations of the payments, and what is the use of corporate credit cards in this regard.


Accounting firms can assist you in managing your pay taxes with credit cards and avail maximum tax relief possible. Let’s talk to one of our professionals or tax advisor.


What Does HMRC Say about How to Pay Taxes with Credit Cards in the UK?

In December 2018, HMRC sent written warnings along with the tax bills which state as:

“From 13 January 2018 HMRC will no longer be accepting payments made from personal credit cards. Corporate, business and commercial credit cards are not affected by this change and HMRC will continue to accept personal and commercial debit cards.”

Now people who used their personal credit cards for tax payments, considered this as trouble. Some people even used borrowed money using credit cards to pay their tax bills before the new rules were implemented. If you are the one who does not have money in cash to pay your tax bills, you must hurry to file your self-assessment and get in touch with HMRC and discuss setting up your payment plan.


How Can I Pay my Tax Bills Now?

The good news is for the taxpayers. This is because there are multiple payment options that are open for taxpayers. As a taxpayer, you can use cheques, CHAPS, BACS, faster payment and direct debit to pay your tax. How much time you have to make the payment will depend on the type of option that you will choose to pay your tax.

Once you are done gathering your paperwork, you can simply log in to your Government Gateway account using your ID and password. You can simply file your tax returns then and pay your tax bills before 31st January.


What is the Limitation of the Payment Options?

There are a few points that are considered to be the limitation of your tax payment. These are listed and explained in the following:

  1. You will have to pay a fee when you intend to use the corporate card to pay your tax bills.
  2. If you have multiple tax payments, you can use one card to make each payment. Let’s take the example that you have to pay the employer’s PAYE and corporation tax and use a different card for each payment.
  3. If you are unable to make full payment with one card, you will have to use another payment method.
  4. For the same tax, it is not allowed to use multiple cards.


The Bottom Line

Now that we have gathered a fair amount of information about paying taxes with credit cards, we can bring the discussion towards wrapping up. To make the tax bill payment experiment easier, there are multiple options offered by HMRC. However, you will have to adhere to the set of rules and follow certain limitations to make it a successful payment experience. We hope these few minutes of reading will help you to develop a better understanding of how to pay taxes with credit cards in the UK.


We are committed to delivering exceptional accounting services to our valuable clients in the UK to ensure they get the most professional solution to queries about how to pay taxes with credit cards in the UK.


Disclaimer: All the information provided in this article on how to pay taxes with credit cards in the UK, including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.