Credit card to pay tax bill

Klwjaew

Hi, does anyone know if I pay my tax bill with a newly opened 0% credit card, after I have paid the transaction fee of 1.5% will I then get charged on my card as if it's a cash withdrawal or will the 0% interest stand? Thanks

Aquamania

Klwjaew wrote: »

Hi, does anyone know if I pay my tax bill with a newly opened 0% credit card, after I have paid the transaction fee of 1.5% will I then get charged on my card as if it's a cash withdrawal or will the 0% interest stand? Thanks

What's the 1.5% transaction charge?

If you mean the surcharge HMRC apply for paying your tax or related charges by credit card, I think it is only 1.4%

The credit card company should treat the transaction like an online purchase.

pjread

I'm assuming it'd show as a purchase, but be good to hear confirmation from someone who's done it? I've paid mine already but may well want to stick it on a 0% card next year.

CKhalvashi

When I've paid mine with a personal CC (not interest free, for the airmiles), it's shown as a purchase.

CK

DesG

I paid using a 0% purchases card, and it was treated as a purchase.

St8_2

I can also confirm it's a purchase. I've been paying tax with a credit card for a few of years, taking advantage of the 0% deals. It's nice to spread the tax over the year instead of needing to lose a large lump from savings.

gwapenut

Yes, it's a purchase and it also qualifies for cashback. I was lucky enough for it to coincide with my 4% double cashback month on my (now defunct) High5 Barclaycard, so the handling fee was more than covered.

Amex not accepted.

gwapenut

dannyarcher wrote: »

You can pay it with credit card but only do that if its the last option

I disagree, they should do it as a first option if the interest free period they describe is more than a year and you do not have > £10k-£15k savings.

For a fee of 1.5%, you should be able to earn more interest than that (especially in a NISA from July) and may even have a profitable re-stooze in a year's time.

Fruit_and_Nut_Case

dannyarcher wrote: »

You can pay it with credit card but only do that if its the last option

Care to explain the thinking behind that?