Credit card to pay off tax bill?

suemoo

Help, I'm looking for some advice! I have an £8,000 tax bill coming up but I'm currently overdrawn around £7,000. I'm self-employed and have "money owed" - within the next 6 months I'd expect to have my overdraft and tax money in and be breaking even again. However, in the meantime, my hubby and I have to make ends meet! Our mortgage is £77,000. We have two ISA's from about 5 years ago - after dropping from £14,000 down to about £10,000 they've been creeping back up and we're due a statement this month - we're expecting them to be back up to the £14,000 mark again. So... as we see it, our options are this:

1) Extend overdraft with bank (if they'll let us) and carry on paying charges which are around £60 a month.

2) Put the tax bill on our mortgage.

3) Use one of the ISA's to pay tax bill.

4) Get one of these 0% credit cards and pay the tax bill that way - is this possible? Can you pay a tax bill on a credit card? It's only a temporary measure and as my payments come through we'll definitely be able to pay it off.

All advice gratefully received.

grumbler

suemoo wrote:

...4) Get one of these 0% credit cards and pay the tax bill that way - is this possible? Can you pay a tax bill on a credit card?

It is probably the cheapest way to borrow money. However, the only way to pay tax bill with CC is in using Super Balance Transfer (term used here). See links Super BTs and Balance Transfers in the blue box above; also REVENGE! Make Free Cash from Credit Cards (The Middle Route), http://www.stoozing.com/full.htm, http://www.stoozing.com/0fees.htm.

silvercar

If you pay your tax online you can pay easily by credit card.

grumbler

silvercar wrote:

If you pay your tax online you can pay easily by credit card.

I never paid myself, but:
How do I make a payment? :

You can pay

• Through your bank (e.g. by Telephone or Internet banking, BACS Direct Credit or exceptionally CHAPS.)
• At your bank (using Bank Giro)
• At the Post Office (not VAT Excise and Custom Duties)
• By Debit Card over the Internet (SA, PAYE and Stamp Duty Land Tax only) or
• Direct to HM Revenue & Customs

Self Assessment (SA) :

You can pay through your bank’s Internet/Telephone banking service or by Debit Card over the Internet. We can also accept payment by Bank Giro or at the Post Office.

suemoo

Thanks all. Wiht hindsight, I've left it all too late - no way any credit cards are coming before 31st January... But thanks anyway!

biglugs

You cannot pay your tax bill with a credit card, but I have in the past (about 3 years ago) paid it with a credit card cheque without any problems. The Revenue were happy to accept my money, presumably because they don't pay merchant fees on credit card cheques?