Paying your tax by credit card

By Bridget Martin, Personal Tax Manager

If you pay your tax using a credit card, you could be paying unnecessary fees.

HMRC have historically charged a non-refundable fee of 1.5% for credit card payments.

From 1 April 2016, HMRC have sought to bring their charges in line with the actual fees they incur for offering the facility. Generally, the rate has reduced for payments made using personal credit cards but increased for company card payments. 

The new rates are outlined below.

Personal credit cards  
  Rate

VISA Personal Credit Card 

0.415%

MasterCard Personal Credit Card 

0.386%

MasterCard World Premium Credit Card 

0.374%

MasterCard Signia Premium Credit Card 

0.606%

MasterCard Elite Premium Credit Card 

0.606%
Corporate credit cards  
   

VISA Business Credit Card 

1.508%

VISA Corporate Credit Card 

1.744%

VISA Purchasing Credit Card 

1.755%

MasterCard Business Credit Card 

1.973%

MasterCard Corporate Credit Card 

2.248%

MasterCard Purchasing Credit Card 

2.406%

 

If you’d like any advice on the most cost effective way of paying your personal or corporate tax, please speak to your contact partner or to Bridgit Martin on 020 7490 7766 or email bridgitmartin@lubbockfine.co.uk.

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