Payment by credit card is not allowed, except when paying customs duties at airports and ports. However, HMRC are looking at the possibility of credit card payment.
In the past, HMRC have felt that using credit cards to pay tax would draw taxpayers deeper into debt. However, they can be a better alternative to other forms of finance.
A key issue is the transaction fee charged by card issuers. HMRC believe that this should be passed on to the taxpayer using the credit card to pay the tax so that the charge is not effectively borne by all taxpayers.
Payment by credit card is not allowed, except when paying customs duties at airports and ports. However, HMRC are looking at the possibility of credit card payment.
In the past, HMRC have felt that using credit cards to pay tax would draw taxpayers deeper into debt. However, they can be a better alternative to other forms of finance.
A key issue is the transaction fee charged by card issuers. HMRC believe that this should be passed on to the taxpayer using the credit card to pay the tax so that the charge is not effectively borne by all taxpayers.
Questions for consultation
Would it be helpful to allow taxpayers to pay their tax by credit card?
Should credit card payments only be accepted for tax which is overdue, or should it be available for any tax payments?