Wondering can I pay taxes with credit card? The quick answer is no, not with the personal credit card, but you can pay with the debit or corporate credit card as EU legislation has prohibited HMRC from recharging relevant fees back to customers in 2018. So from 2018 onwards, you can enjoy a toll-free use of credit cards to make purchases, but small business owners can’t pay for their Self-Assessment with their personal credit cards.
Although, paying your tax bills with credit cards seems a straightforward process as it is the most popular way of paying for things in the UK, but unfortunately, you can’t pay the tax bills with a personal credit card. Let’s see what taxes you can pay, how you can pay the self-assessment tax bill with a debit or corporate credit card, how you will pay, and what are other payment options available to pay the tax bills? Read on to learn all!
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Can I Pay Taxes With Credit Card?
You can pay your tax bills only with a debit or corporate credit card but with a small non-refundable fee. However, there is no fee for paying them with your personal debit card (not with your personal credit card). Here is the list of taxes that you can pay to HMRC:
- Employers’ PAYE and National Insurance
- Stamp Duty Land Tax
- Corporation Tax
- Self Assessment
- VAT
- Income Tax that you previously under-paid
- Miscellaneous payments (if your payment reference begins with ‘X’)
- Imported goods you’ve declared on the Customs Declaration Service
Paying Self Assessment tax Bill with Debit or Corporate Credit Card
You can sign in to your Government Gateway online account to pay self-assessment tax bills with a debit or corporate credit card along with a non-refundable fee. If you are paying with your personal debit card, there’s no fee to pay.
How to Pay?
You should use your 11 character payment reference (10 digit UTR with a K) to pay taxes. You can get your UTR from your online account of HMRC or through your pay in slips. The payment made will be accepted by HMRC on the date they are paid, not the date it reaches their account (like on weekends or bank holidays).
If you are unable to make Self Assessment tax payments through the debit or corporate credit card, there are many other payment options available.
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Other Payment Options to Pay Tax Bills
We know that you are unable to pay your tax bills with a personal credit card, however, there are many other ways to pay the tax bill. Here is the table that shows different payment methods and the time needed to pay the bill using these methods:
| Payment method | Time needed |
|---|---|
| Online or telephone banking | Same or next day |
| CHAPS | Same or next day |
| Debit or corporate credit card online | Same or next day |
| Bank or building society | Same or next day |
| BACS | Three working days |
| Direct Debit (if previously set up with HMRC) | Three working days |
| Cheque in the post | Three working days |
| Direct Debit (if not set up with HMRC before) | Five working days |
Bear in mind that while paying the taxes you need to have the records of the paperwork, then you are required to log in online using your Government Gateway user ID and password. Finally, you can file your returns and pay the taxes before 31 January to avoid penalties.
Quick Sum Up
Hopefully, after giving this post a read, you now have a better understanding of can you pay taxes with credit card. Note that EU legislation has prohibited HMRC to collect the tax bills with a personal credit card. However, you can still use your debit or corporate credit card to pay them. Additionally, there are several payments options to pay the tax bills, like online or telephone banking, CHAPS, BACS, bank or building society, cheques, direct debit, etc.
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Disclaimer: This blog is written for general information on paying taxes with a credit card.