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  • FIRST POST
    • daverave7
    • By daverave7 20th Dec 17, 2:39 PM
    • 218Posts
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    daverave7
    Paying Self Assessment Tax by Credit Card
    • #1
    • 20th Dec 17, 2:39 PM
    Paying Self Assessment Tax by Credit Card 20th Dec 17 at 2:39 PM
    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.
Page 1
    • sheramber
    • By sheramber 20th Dec 17, 3:51 PM
    • 4,792 Posts
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    sheramber
    • #2
    • 20th Dec 17, 3:51 PM
    • #2
    • 20th Dec 17, 3:51 PM
    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
    • By daverave7 20th Dec 17, 4:19 PM
    • 218 Posts
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    daverave7
    • #3
    • 20th Dec 17, 4:19 PM
    • #3
    • 20th Dec 17, 4:19 PM
    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
    • By sheramber 20th Dec 17, 5:58 PM
    • 4,792 Posts
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    sheramber
    • #4
    • 20th Dec 17, 5:58 PM
    • #4
    • 20th Dec 17, 5:58 PM
    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!!!8217;s for a different tax, for example Corporation Tax and employers!!!8217; PAYE.
    • daverave7
    • By daverave7 20th Dec 17, 7:53 PM
    • 218 Posts
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    daverave7
    • #5
    • 20th Dec 17, 7:53 PM
    • #5
    • 20th Dec 17, 7:53 PM
    Any idea if I can use one credit card to pay some of it off, then a bank transfer for the rest?
    • noh
    • By noh 21st Dec 17, 8:58 AM
    • 5,246 Posts
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    noh
    • #6
    • 21st Dec 17, 8:58 AM
    • #6
    • 21st Dec 17, 8:58 AM
    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
    • By daverave7 21st Dec 17, 12:16 PM
    • 218 Posts
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    daverave7
    • #7
    • 21st Dec 17, 12:16 PM
    • #7
    • 21st Dec 17, 12:16 PM
    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.
    Originally posted by noh
    To be honest, I had assumed it was a purchase... but I'll find out!
    • martinsurrey
    • By martinsurrey 21st Dec 17, 1:44 PM
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    martinsurrey
    • #8
    • 21st Dec 17, 1:44 PM
    • #8
    • 21st Dec 17, 1:44 PM
    To be honest, I had assumed it was a purchase... but I'll find out!
    Originally posted by daverave7
    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
    • By sheramber 21st Dec 17, 2:09 PM
    • 4,792 Posts
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    sheramber
    • #9
    • 21st Dec 17, 2:09 PM
    • #9
    • 21st Dec 17, 2:09 PM
    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
    • By daverave7 21st Dec 17, 4:31 PM
    • 218 Posts
    • 64 Thanks
    daverave7
    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.
    Originally posted by martinsurrey
    Looking at older threads, it seems to be classed as a purchase. I'm also checking with my card supplier.
    • daverave7
    • By daverave7 22nd Dec 17, 9:25 AM
    • 218 Posts
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    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!
    • 00ec25
    • By 00ec25 22nd Dec 17, 10:24 AM
    • 6,517 Posts
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    00ec25
    I'm still stuck to whether HMRC will accept a part payment by CC. Guess I'll just try!
    Originally posted by daverave7
    I'd be surprised since it states on the page you quoted from in your first post and was linked in the reply from Sheramber 2 days ago (my bolding):

    "If you!!!8217;re unable to pay your bill in full by card, you should use another payment method like a bank transfer."
    • daverave7
    • By daverave7 22nd Dec 17, 12:24 PM
    • 218 Posts
    • 64 Thanks
    daverave7
    I'd be surprised since it states on the page you quoted from in your first post and was linked in the reply from Sheramber 2 days ago (my bolding):

    "If you’re unable to pay your bill in full by card, you should use another payment method like a bank transfer."
    Originally posted by 00ec25
    True. But it's the word "should" rather than "must" strikes me that there might be some leeway (will see!). I wish the HMRC could have made more effort in communicating their change in rules... a couple of months ago there were no restictions on CC payments - so that's why I'm where I am. I have a back up plan involving money transfers but that's going to be costly.
    • daverave7
    • By daverave7 7th Jan 18, 3:15 PM
    • 218 Posts
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    daverave7
    Just to update on this, which might help others in the same situation. HMRC have accepted two payments by credit card and I'll be making a further payment by debit card.
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