Paying Self Assessment Tax by Credit Card

daverave7

I'm about to do my self assessment and I owe approx £15K in tax. Due to financial circumstances and a re-mortgage, I planned to pay the tax by credit card. I therefore applied for and got two 0 % long rate purchase credit cards (both with £8K limits) which will cover the tax. However, I've just been on the self assessment web site and the rules seemed to have changed regarding credit card payments. It states "You won’t be able to pay with a personal credit card from 13 January 2018" - Luckily I have seen this in time as I don't normally pay until late January. It also, states "HMRC limits the number of times you can use a credit or debit card within a certain time to pay your tax". This is vague to me. Does anyone have any idea to what this limit is? I could be in a bit of a pickle if they won't accept £15K by more than one credit card - given that I am unlikely to find further credit since I have recently (in October) been accepted for two credit credit cards.

sheramber

Making more than one card payment

HMRC limits the number of times you can use a credit or debit card within a certain time to pay your tax.

There isn’t a set limit - it depends on HMRC’s view of what’s reasonable based on payment card industry standards and guidance.

The rules apply to multiple card payments against the same tax - you can only make extra card payments if each one’s for a different tax, for example Corporation Tax and employers’ PAYE.

If you’re unable to pay your Self Assessment tax bill in full by card, you should use another payment method like a bank transfer.

https://www.gov.uk/pay-self-assessment-tax-bill/by-debit-or-credit-card-online

daverave7

I find those statements vague.

"There isn’t a set limit - it depends on HMRC’s view of what’s reasonable based on payment card industry standards and guidance."

Is there any way of knowing what is HMRC's view?

sheramber

I think this statement refers

The rules apply to multiple card payments against the same tax - you can only make extra card payments if each one’s for a different tax, for example Corporation Tax and employers’ PAYE.

daverave7

Any idea if I can use one credit card to pay some of it off, then a bank transfer for the rest?

noh

Do the card providers treat a tax payment as a purchase or as a cash transaction? If the later it won't be at 0% if you are able to use the card.

daverave7

noh wrote: »

Do the card providers treat a tax payment as a purchase or as a cash transaction? If the later it won't be at 0% if you are able to use the card.

To be honest, I had assumed it was a purchase... but I'll find out!

martinsurrey

daverave7 wrote: »

To be honest, I had assumed it was a purchase... but I'll find out!

in most CC T&C's a purchase is defined as

"a transaction where you buy goods or services with your card"

you are not getting a good or service by paying your tax bill, so it would not be a purchase on many cards.

sheramber

You would need to ask your credit card company if they treat it as a cash transaction.

HMRC also charge a fee for using a credit card.

daverave7

martinsurrey wrote: »

in most CC T&C's a purchase is defined as

"a transaction where you buy goods or services with your card"

you are not getting a good or service by paying your tax bill, so it would not be a purchase on many cards.

Looking at older threads, it seems to be classed as a purchase. I'm also checking with my card supplier.

daverave7

My CC provider has confirmed that it would be classed as a purchase. I'm still stuck to whether HMRC will accept a part payment by CC. Guess I'll just try!