We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Paying tax bill on credit card
tomcc1
Posts: 18 Forumite
Hi there,
Just a quick question, I am looking to apply for a mortgage in around 2 months. I do all of my purchasing on my credit card and then pay it off each month (I gather this won't affect my affordability as I don't put on more than I can pay off) - I am wondering if I can pay my tax bill on my credit card to take advantage of the reward points I would get.
I have the cash in the bank to pay it, and I would be clearing the balance 2-3 days afterwards (have to wait for the payment to register to earn the points) - would this apparent spike in my card use affect my application?
I would like to take advantage of the points, but I don't want it to prevent me securing a mortgage!
Tom
Just a quick question, I am looking to apply for a mortgage in around 2 months. I do all of my purchasing on my credit card and then pay it off each month (I gather this won't affect my affordability as I don't put on more than I can pay off) - I am wondering if I can pay my tax bill on my credit card to take advantage of the reward points I would get.
I have the cash in the bank to pay it, and I would be clearing the balance 2-3 days afterwards (have to wait for the payment to register to earn the points) - would this apparent spike in my card use affect my application?
I would like to take advantage of the points, but I don't want it to prevent me securing a mortgage!
Tom
0
Comments
-
What are you going to do with the points? Is it worth it?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
They convert into Amazon vouchers, would be worth a couple of hundred quid, but I don't HAVE to do it..just wanted to know if it would scupper our chances.
As I said - I have the cash and could pay it straight from my current account, but I am guessing that either way I would have to explain such a large amount being paid out?0 -
A couple of hundred quid? - how big is the tax bill!!I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Just looked at the payment options on the back of my tax bill and credit card payments are one of the options.
*edit* "Pay online using your debit or credit card. www.billpayment.co.uk/hmrc"0 -
Quite a few thousand...hopefully affordability won't be the problem
0 -
I've only ever paid council tax on credit card and the extra amount they charge would far, far outweigh any bonus points or cashback.
Not sure on income tax.0 -
hmmm don't think you're right lovinituk
https://www.gov.uk/pay-self-assessment-tax-bill/by-debit-or-credit-card-online
Edit to add - the 1.4% fee might make this decision easier though!0 -
Out of interest though, it is border line now as to whether it's worth it - benefit is still larger than the fee, would doing this cause a problem? Reason being I might want to make another large purchase which I, again, have the cash for.
Is it possible to explain if it becomes an issue or will it just be an automatic 'no'?0 -
Do you know when your credit card reports to the credit reference agencies?
If you can work this out then you can time the payment so that it won't even get reported.
I.e. if it is not the current balance or the statement balance then how would they know?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.4K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.5K Work, Benefits & Business
- 601.3K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards