Paying Self assessment tax on credit card

splatt30

If you pay your tax bill by credit card there is a 1.5% fee. Fine.

Does anyone know if it is treated as purchase or as a cash advance by the credit card company? I have a 0% on purchases card and even with the fee it makes sense for me to pay on the credit card, but only if it is treated as a purchase not a cash advance.

winspiration

I've used my MBNA card to pay my tax and it has been treated as a purchase, not a cash advance.

antonic

You need to remember that if you pay by credit card there is a 1.5% transaction fee added to the amount you pay (this is payable to the Credit Card company and not HMRC).

booksurr

antonic wrote: »

You need to remember that if you pay by credit card there is a 1.5% transaction fee added to the amount you pay (this is payable to the Credit Card company and not HMRC).

you need to read the OP

splatt30 wrote: »

"If you pay your tax bill by credit card there is a 1.5% fee. Fine."

antonic

booksurr wrote: »

you need to read the OP

Thank you for taking the time to point out my error.

Cook_County

The credit card processor does not get exactly 1.5% either. They get whatever merchant fee HMRC has agreed to pay them. HMRC only recently (bizarrely) increased the charge from 1.4% to 1.5%.