Pay Tax by Card: What HMRC Allows and What It Costs

Can You Pay Tax by Card in the UK?

Yes. HMRC provides online card-payment services for a range of personal and business taxes. The payment must be made using an accepted card and the correct tax reference.

HMRC currently accepts:

• Personal debit cards, with no HMRC card fee
• Corporate debit cards, subject to a non-refundable fee
• Corporate credit cards, subject to a non-refundable fee

HMRC does not accept personal credit cards. This restriction has applied since January 2018.

Can You Pay Tax by Credit Card?

You cannot pay tax by credit card where the card is a personal consumer credit card. A company or business may use an eligible corporate credit card, but HMRC adds a transaction fee to recover its processing cost.

The corporate card fee is displayed before the payment is authorised. It is non-refundable, including where the underlying tax payment is later reallocated or repaid.

The phrase pay tex by credit card is a common misspelling in online searches, but the practical rule is straightforward: personal credit cards are not accepted, while qualifying corporate credit cards can be used for many HMRC liabilities.

Can You Pay Tax by Debit Card?

Yes. You can normally pay HMRC with a debit card through the relevant GOV.UK payment page.

• Personal debit card: no HMRC transaction fee
• Corporate debit card: non-refundable HMRC processing fee

Your bank may still apply its own restrictions, fraud checks, daily transaction limits or account charges. These are separate from HMRC’s fees.

Personal and Corporate Card Charges

HMRC does not publish one universal corporate-card percentage because the amount can vary according to the card and transaction. The exact fee is shown during the payment process before you confirm.

Which Taxes Can You Pay by Card?

HMRC’s central card-payment service can be used for several common liabilities, including:

• Self Assessment
• Employers’ PAYE and National Insurance
• Construction Industry Scheme deductions
• VAT
• Corporation Tax
• Stamp Duty Land Tax
• Simple Assessment
• Some Income Tax underpayments
• Selected penalties and enquiry settlements
• Imports declared through the Customs Declaration Service
• Miscellaneous HMRC payments with a reference beginning with “X”

Not every liability uses the same payment page or reference format. Always start from the relevant GOV.UK tax-payment page rather than using an old bookmark.

How to Pay Self Assessment by Debit Card

1. Open the official Self Assessment payment page on GOV.UK.
2. Select the option to pay by debit or corporate credit card.
3. Enter your 11-character payment reference.
4. Enter the payment amount.
5. Provide the card details and billing information.
6. Review any corporate-card fee.
7. Authorise the payment.
8. Save the confirmation and payment reference.

For Self Assessment, the payment reference is normally your 10-digit Unique Taxpayer Reference followed by the letter “K”. Using the wrong reference can delay allocation and may leave the correct liability showing as unpaid.

Self Assessment Card Payment Example

This is only a format example. Use the UTR shown on your own HMRC account, tax return or payment notice.

How to Pay Corporation Tax by Card

Corporation Tax can be paid online using a personal debit card, corporate debit card or corporate credit card. A personal credit card cannot be used.

You must use the 17-character Corporation Tax payment reference for the accounting period being paid. The reference changes for each accounting period, so do not automatically reuse a saved reference from an earlier payment.

An incorrect reference can cause the payment to be allocated to the wrong period and may result in interest or reminder notices while HMRC traces the payment.

How to Pay VAT by Card

VAT can be paid using a personal debit card, corporate debit card or corporate credit card through HMRC’s online service. Personal credit cards are not accepted.

Use the correct VAT registration number and check the payment deadline. A card payment does not change the VAT due date, and a late payment can trigger interest and penalties under the VAT penalty system.

How to Pay PAYE and CIS by Card

Employers can pay PAYE, National Insurance and Construction Industry Scheme deductions by accepted debit or corporate credit card.

The correct payment reference depends on the period and liability. Employers should use the reference provided by HMRC or generated from their accounts office reference and payment period.

PAYE is generally due by the 22nd after the end of the relevant tax month or quarter where payment is made electronically. Card payment should be completed by the deadline.

When Does HMRC Treat a Card Payment as Paid?

HMRC normally accepts an online debit or corporate credit card payment on the date it is made, including weekends and bank holidays, rather than the later date on which funds reach HMRC’s bank account.

Keep the payment confirmation. If a payment is made close to the deadline, the receipt provides evidence of the transaction date.

Can a Card Payment Still Be Late?

Yes. A payment can still be treated as late where:

• The card transaction is completed after the statutory deadline
• The payment is declined or reversed
• The wrong tax reference is used
• The amount paid is less than the balance due
• A payment page is started before the deadline but completed afterwards

Do not assume that entering card details is enough. The transaction must be successfully authorised and confirmed.

What Happens If the Card Payment Is Declined?

A payment can be declined because of:

• Insufficient funds
• A daily transaction limit
• Incorrect card or billing details
• The bank’s fraud-prevention checks
• An unsupported card type
• Expired card details
• Temporary technical problems

Contact the card provider first where the payment is declined. You may need to use another accepted payment method. HMRC’s card-payment support line can help trace payments and explain error messages, but it cannot take a card payment by telephone.

Are There Card Payment Limits?

HMRC’s internal guidance describes online card transactions from £0.01 up to £97,000 through its Online Payment Service. Your bank or card issuer may impose a lower transaction or daily limit.

Large liabilities may therefore need to be divided into more than one payment or paid by bank transfer. Check that every payment uses the correct reference.

Can You Make More Than One Card Payment?

You can normally make more than one payment towards a tax bill. This may be useful where:

• Your bank imposes a daily card limit
• You are paying from more than one account
• You want to reduce the balance before the final deadline
• You are making staged payments before the due date

Part-payments made without an agreed Time to Pay arrangement do not change the legal deadline for the remaining balance.

Paying Tax by Card Versus Bank Transfer

Paying Tax by Card Versus Direct Debit

Direct Debit can be suitable for scheduled tax payments, while a debit-card transaction can be useful for a one-off payment made close to the deadline.

HMRC advises taxpayers to allow enough time when setting up a new Direct Debit. For some taxes, a new instruction can require several working days before collection.

A card payment may provide faster confirmation, but a corporate card fee can make it more expensive.

Paying Through Open Banking

For some taxes, HMRC lets you approve a payment through your online or mobile bank account. You start the payment on GOV.UK and are redirected to your bank to authorise it.

This can reduce the risk of entering HMRC’s bank details or payment reference manually. Availability depends on your bank and the tax being paid.

Is It Sensible to Use a Corporate Credit Card?

A corporate credit card can provide short-term cash-flow flexibility, but it may be expensive. Consider:

• HMRC’s non-refundable card fee
• The card provider’s interest rate
• Cash-advance or tax-payment treatment
• Whether the balance will be cleared in full
• The effect on the company’s available credit
• Alternative bank or HMRC payment arrangements

Check the card agreement. A provider may classify a tax payment differently from an ordinary purchase.

Does Paying by Card Avoid HMRC Interest?

A successful payment made by the tax deadline prevents late-payment interest on the amount paid. Paying after the deadline does not erase interest already accrued.

Using a card also does not make the cost interest-free. A corporate credit-card provider may charge interest until the balance is cleared. That commercial interest can be substantially higher than HMRC’s late-payment rate.

If you cannot pay your tax on time, avoid ignoring the balance or relying solely on expensive borrowing. Contacting HMRC promptly and reviewing the payment options available can often help limit additional interest, penalties and enforcement action.

What If You Cannot Clear the Card Balance?

Before using corporate credit, compare the total cost with other options. Funding a tax bill through revolving credit can turn a short-term HMRC liability into a higher-cost commercial debt.

Where the tax cannot be paid from available funds, consider whether an HMRC Time to Pay arrangement is more appropriate, consider whether an HMRC Time to Pay arrangement is more appropriate. Approval is not automatic, and late-payment interest normally continues, but the instalments may be more sustainable than expensive card borrowing. If the outstanding balance relates to Self Assessment, you may be able to set up a Self Assessment payment plan with HMRC, provided you meet HMRC’s eligibility criteria and apply before enforcement action begins.

Can You Pay a Future Self Assessment Bill in Stages?

You can make multiple payments before the Self Assessment deadline. Taxpayers who are up to date may also be able to use a Budget Payment Plan to make weekly or monthly Direct Debit payments towards the next bill. You can also manage future liabilities through the HMRC app to make Self Assessment tax payments, where available.

A Budget Payment Plan is different from Time to Pay:

• A Budget Payment Plan builds credit towards a future bill.
• Time to Pay deals with a bill that cannot be paid in full.

Can Someone Else Pay Your Tax by Card?

Another person or business may be able to make a payment using an accepted card, provided the correct tax reference is used and the cardholder authorises the transaction.

The payment does not transfer the underlying tax obligation. The taxpayer remains responsible for ensuring that the correct amount reaches the correct HMRC account.

Can a Director Use a Personal Debit Card for Company Tax?

HMRC accepts personal debit card payments without a card fee, including where an individual makes a qualifying payment towards a company tax liability. However, the company should record the transaction correctly in its accounts.

Depending on the circumstances, the payment may be treated as money introduced by the director, a director’s loan account transaction or reimbursement due from the company. Accounting treatment should be confirmed rather than assumed.

Accounting Treatment of Corporate Card Fees

A corporate-card fee incurred solely to pay a business tax liability should be recorded separately from the underlying tax payment. Whether it is deductible depends on the tax, purpose and accounting treatment.

For example, Corporation Tax itself is not deductible when calculating taxable company profit. Transaction charges should be reviewed separately under the normal business-expense rules.

Common Card Payment Mistakes

• Trying to use a personal credit card
• Assuming all debit cards are fee-free
• Using an outdated or incorrect payment reference
• Reusing a Corporation Tax reference for the wrong accounting period
• Leaving the transaction until the last minute
• Ignoring the corporate-card fee
• Failing to consider card-provider interest
• Assuming a declined transaction has paid the tax
• Not saving the confirmation receipt
• Using an unofficial payment link

Card Payment Security

Start from GOV.UK or your HMRC online account. If you’re expecting money back from HMRC, it’s also worth understanding how to claim a tax refund safely so you can avoid fraudulent repayment messages. Avoid payment links in unexpected emails, texts or social-media messages.

HMRC will not normally ask you to:

• Pay tax using gift cards
• Transfer money to a personal bank account
• Share your full card PIN
• Download remote-access software to make a payment

Verify suspicious contact independently before entering card details.

Practical Checklist Before You Pay HMRC With a Card

1. Confirm the tax, amount and deadline.
2. Check whether your card type is accepted.
3. Find the correct payment reference.
4. Check your bank’s transaction limit.
5. Review any corporate-card fee.
6. Consider the card provider’s interest and charges.
7. Compare bank transfer and Direct Debit alternatives.
8. Use the official GOV.UK payment page.
9. Save the successful payment confirmation.
10. Check your HMRC account after processing.

Final Guidance on Paying Tax by Credit or Debit Card

You can pay tax by card using a personal debit card, corporate debit card or corporate credit card for many HMRC liabilities. A personal debit card is normally fee-free, while corporate card payments carry a non-refundable fee. Personal credit cards are not accepted.

Before completing a UK pay tax debit credit card transaction, confirm the payment reference, deadline, card-provider limits and total cost. Reviewing your pre-tax year-end planning strategy can also help you prepare for future tax liabilities and reduce last-minute payment pressures. Save the receipt and check that HMRC allocates the payment correctly. Where the tax cannot be funded sustainably, review Time to Pay rather than relying automatically on costly corporate credit.

Pay Tax by Card Case Study

Oliver, the director of a technology consultancy, visited our Farringdon office shortly before a Corporation Tax payment deadline. His business had sufficient funds to pay the liability, but he wanted to know whether he could pay tax by card to simplify cash flow and whether using a corporate credit card would provide any advantages. He was also unsure about HMRC’s rules on card fees and which payment methods were accepted.

After reviewing the payment options, we explained that HMRC accepts personal debit cards, corporate debit cards and corporate credit cards for many tax liabilities, but does not accept personal credit cards. We also highlighted that while personal debit card payments are normally fee-free, corporate card payments attract a non-refundable processing fee. Together, we compared the overall cost of paying by corporate credit card with alternatives such as bank transfer and Direct Debit to ensure the most cost-effective approach.

During the meeting, Oliver also learned the importance of using the correct HMRC payment reference, particularly for Corporation Tax, where each accounting period has its own unique reference. Using an incorrect reference could delay allocation and result in unnecessary reminder notices or interest.

By the end of the consultation, Oliver understood which payment method best suited his business, how to avoid common payment errors and how to ensure his tax reached HMRC before the deadline.

We also explained that businesses experiencing ongoing cash-flow difficulties should seek help with outstanding tax bills as early as possible rather than allowing HMRC debts to build up. Early advice can make it easier to explore available payment arrangements and reduce the risk of further charges.