Paying Tax by Credit or Debit Card: What HMRC Allows and What It Costs

This guidance is for UK taxpayers who want to know whether they can pay their tax by credit or debit card, and how HMRC treats card payments in practice.

Paying tax by card is permitted in certain circumstances, but it is not always the most cost-effective option. Understanding how card payments work, including fees and processing rules, helps avoid unexpected costs or payment issues, something a tax advisor in London can clarify before you choose how to pay.

Accepted Card Payments to HMRC and Associated Charges

HMRC has not accepted personal credit card payments since January 2018 when credit card surcharges on personal credit cards were banned.

However, HMRC continues to accept payments by corporate credit card or corporate debit cards. The use of these cards is subject to a fee.

Payment by personal debit cards is currently fee-free. There is also no charge for payment by Direct Debit, bank transfer or cheque.

You can pay HMRC online using a suitable credit / debit card for:

• Self-Assessment
• Employers’ PAYE and National Insurance
• VAT 
• Corporation Tax 
• Stamp Duty Land Tax 
• Income Tax (because you previously under-paid)
• Imported goods you’ve declared on the Customs Declaration Service
• Miscellaneous payments (if your payment reference begins with ‘X’)

When making a payment for Self-Assessment, you should use your 11-character payment reference. This is your 10-digit Unique Taxpayer Reference (UTR) followed by the letter ‘K’.

HMRC will accept your online debit or credit card payment on the date you make it, and this includes payments made on bank holidays and weekends.

Costs and Considerations When Paying Tax by Card

HMRC does not charge a fee for debit card payments, but credit card payments may incur charges set by the card provider. These charges are separate from HMRC and can vary depending on the card issuer.

Where a credit card balance is not cleared in full, interest charged by the card provider can significantly increase the overall cost of paying tax this way.

In Practice – How Card Payments Are Commonly Misunderstood

In practice, we often see taxpayers assume that paying by credit card avoids late payment interest entirely. While the tax is treated as paid once HMRC receives it, card interest charged by the provider can outweigh the benefit if balances are carried forward, particularly for those seeking self assessment advice in London.

For practical guidance, experienced accountants in Farringdon work with taxpayers across nearby areas such as Spitalfields and Finsbury Circus, advising on payment methods and cash-flow planning. At CIGMA Accounting, our team can help you decide whether paying by card is suitable for your situation and outline the implications before you proceed.

Check Whether You Can Pay Your Tax by Credit or Debit Card

Not every tax liability can be paid in the same way, and card payments are not always suitable. A short review can help confirm whether paying by credit or debit card is available and appropriate for your situation.