Paying HMRC by Credit Card: New Fees Explained

Many taxpayers prefer paying HMRC by credit card for convenience, but it comes with a processing fee. Previously, HMRC charged a flat 1.5% fee for all card payments. This has now changed to a variable rate based on card type.

The revised fee structure means lower charges for personal credit cards but higher fees for corporate cards.

New Credit Card Charges When Paying HMRC

The updated fees depend on whether you use a personal or corporate card:

Personal Visa and MasterCard: Fees range from 0.374% to 0.606%, a reduction from the previous 1.5%.
Corporate Visa and MasterCard: Charges now range from 1.508% to 2.406%, making payments more expensive for businesses.

This change benefits individuals paying personal tax bills but increases costs for companies using corporate credit cards.

Is Paying HMRC by Credit Card a Good Idea?

Using a credit card to pay tax can help manage cash flow, but fees should be considered. Lower personal card fees may make it more appealing. However, for corporate taxpayers, the higher charges could make other payment methods more cost-effective.

Alternatives include:

Direct Debit – No fees and automated payments.
Bank Transfer – Faster and free.
Debit Card – No processing fees.

Businesses should carefully assess whether paying HMRC by credit card remains the best option.

How We Can Help

If you need advice on tax payments, credit card fees, or managing cash flow, our team at Lewis Brownlee can assist you. As experts in the field, we know how important it is to ensure your finances are kept in check. And, it’s what we do day-in, day-out. We live, breathe and love it. So, if you would like the peace of mind knowing that your accounts are being handled by professional, do give us a call. Plus. we offer a free introductory meeting so that you can find out exactly how we can help before you commit. We know it can be daunting – so why not books yours, come along and see us.