How to Pay Your HMRC Tax Bills with Credit Card
Personal credit cards has long been a popular means of payment for sole traders and businesses in the UK, that is, until 2018, when legislation passed that prevented HM Revenue and Customs (HMRC) from passing on accumulated bank charges to the country’s taxpayers. Their response to the new ruling was to abruptly announce that they would no longer accept personal credit cards – leaving hundreds of thousands of taxpayers who had previously relied on card payments out in the cold.
While debit and corporate credit cards remain unaffected, the restrictions on personal cards also extend to payments made for VAT, PAYE as well as Self Assessment Tax. Many self-employed individuals and small business entrepreneurs found that they lacked the immediate resources or prior requirements to have organised access to applicable corporate credit cards. In addition, they also lost access to their pre-approved and readily available credit line.
Since then, more and more restrictions on the types of bills and invoices that can be paid to local authorities using different payment methods have been discussed, with businesses left to chase information and plan around multiple different processes in order to make sure all due payments are made on time.
So what solutions exist for those businesses or self-employed individuals looking to pay HMRC using a personal credit card or consolidate all due tax payments in one simple platform for easy reconciliation?
HMRC does not accept personal credit cards – but we do!
Billhop is an online payment service that lets you manage and pay all your tax bills and other due invoices using your preferred credit card, even if your end recipient does not accept card payments. This means that you can choose to pay your Self Assessment tax, VAT or PAYE using a personal credit card, without HMRC needing to be notified. Nor will they be required to make any adjustments in order to receive the funds. Sounds too good to be true? Discover how to pay your HMRC tax bill with credit card here.
Extend your payment time and streamline payables
Businesses can also use Billhop to simplify their billing cycle. Ensuring positive cash flow can be tedious when you are struggling to manage multiple billing cycles generated from receiving multiple invoices. With Billhop, you can choose to pay all of your due invoices in one place, with one card – This means consolidating your due payments into a single billing cycle. Tapping into your interest-free grace period can help your business ease cash flow constraints and optimise your working capital.
What cards can I use?
We accept UK issued Visa, Mastercard, Diners and American Express cards.
What information do I need?
HMRC Accounts & Sort Codes
HMRC has two different accounts that your tax can be paid in to. Your bill will tell you which account to pay in to. If you do not have a bill, or you’re not sure, HMRC recommends using HMRC Cumbernauld.
- HMRC Cumbernauld - Account number: 12001039 / Sort Code: 08 32 10
- HMRC Shipley - Account number: 12001020 / Sort Code: 08 32 10
Please note: If you are paying Class 2 National Insurance (if you do not pay through Self Assessment) then you will need a different account. This can be found on your slip.
You reference number is found on your paying in slip or in your online HMRC account.
Registering an account is completely free.
At Billhop, we believe in transparent pricing and open communication. We charge a fixed service fee of 2.95% of the total payment amount, which covers all of the costs of processing, handling and transferring the payment. There are no hidden charges or recurring subscription fees when you use our services.
When Will My Payment be Made?
Once a bill payment is confirmed, Billhop will receive the funds from your card’s acquirer within 2-4 business days (Visa, Mastercard and Diners take 2 days to issue funds while American Express takes up to 4 days). Once the funds are received, we initiate a direct payment into the specified HMRC account via a same-day bank transfer. Because your end-recipients receive the funds via a regular bank transfer, there is no need to onboard them onto our systems or notify them that you will be paying your bill by card.
Please note, our customer and system data is encrypted and protected with a 1.3 TLS Extended Validation SSL certificate. We do not store your card data and monitor all transactions diligently in order to detect unusual or fraudulent activity.
How Does Billhop Work?
To begin paying your taxes with Billhop, simply register an account, upload your payment information and card details and confirm the payment date. For a more comprehensive guide on how to make payments with Billhop, please click here.
Which Tax Bills can I Pay with Billhop?
- Income tax
- Corporation tax
- Self-assessment tax
- Stamp duty land tax
- National insurance
Earn More Rewards
Paying your HMRC taxes with credit cards can be an effective way to hit spending targets and rack up miles. It is no wonder that over 800,000 taxpayers across the UK choose to pay their various tax bills with credit cards.
Credit cards like the Citi Double Cash Card and American Express Platinum Cashback Everyday Credit Card offer 2% and 5% cash back respectively. Depending on the card you pay with, you may ultimately offset Billhop’s service fee while earning points and miles. It goes without saying that Billhop is especially popular amongst frequent flyers.
Pay Your Tax Bills With Billhop Today
Paying taxes can be a real chore. But it does not have to be. Join over 65 000 customers and take control of your cashflow by registering with Billhop today!