How to pay HMRC with a credit card

Quick answer

HMRC accepts business and corporate credit cards directly through their online payment portal, though they charge a small processing fee. For personal credit cards or Amex (which HMRC doesn't always accept smoothly), use a bill pay service to send HMRC a bank transfer funded by your card.

The two ways to pay HMRC by card

There are two routes:

1. Pay HMRC directly — through the GOV.UK payment portal. HMRC accepts business/corporate credit cards but charges a non-refundable processing fee (typically 0.5-1.5%). Personal credit cards are not accepted.

2. Pay via bill pay service — enter HMRC's bank details in a service like Incredible, pay with any card (including personal and Amex), and the service sends a bank transfer to HMRC. Fee from 1.99%.

Which route is cheaper depends on the card you're using and the specific HMRC fee at the time. For Amex users, bill pay is often the only practical option since HMRC's direct portal can be inconsistent with Amex acceptance.

Paying VAT by credit card

VAT bills are quarterly and often substantial — making them ideal for credit card cashflow benefits.

Direct route:

  1. Go to GOV.UK pay VAT
  2. Enter your VAT registration number
  3. Select "credit or debit card"
  4. Pay with your business credit card

Bill pay route:

  1. Find HMRC's bank details for VAT payments on GOV.UK (account name: HMRC VAT)
  2. Enter the details in your bill pay service
  3. Use your VAT registration number as the payment reference
  4. Pay with any credit card

Timing tip: VAT is due one month and seven days after the end of each VAT quarter. Pay just after your credit card billing cycle starts to maximise float — you could get up to 56 days of interest-free credit on your VAT bill.

On a £10,000 quarterly VAT bill paid by credit card:

  • Cashflow benefit: £10,000 float for 30-56 days
  • Rewards earned: £100 (at 1% back)
  • Cost: £50-200 depending on route and card

Paying corporation tax by credit card

Corporation tax is due 9 months and 1 day after your company's financial year end. It's usually a large, one-off annual payment.

Direct route:

  1. Go to GOV.UK pay corporation tax
  2. Enter your company UTR (Unique Taxpayer Reference)
  3. Pay by business credit card

Bill pay route:

  1. Use HMRC's bank details for corporation tax (published on GOV.UK)
  2. Enter your company UTR as the reference
  3. Pay with any credit card

Is it worth it? On a £20,000 corporation tax bill:

  • Direct HMRC fee (~1%): £200
  • Bill pay fee (from 1.99%): ~£400
  • Rewards earned (1%): £200
  • Net cost: £0-200 depending on route

The real value is cashflow. If paying from savings, you keep £20,000 earning interest for an extra 30-45 days. If the alternative is drawing on an overdraft or breaking a deposit, the card fee is almost certainly cheaper.

Paying self-assessment by credit card

Self-assessment payments are due 31 January (balancing payment + first payment on account) and 31 July (second payment on account).

Direct route:

  1. Go to GOV.UK pay self-assessment
  2. Enter your UTR
  3. Pay by business credit card

Important: HMRC only accepts business/corporate cards directly. If you're a sole trader with a personal credit card, use the bill pay route.

Bill pay route:

  1. Use HMRC's self-assessment bank details
  2. Your UTR as the payment reference
  3. Pay with any card — personal or business, Visa, Mastercard, or Amex

Self-assessment is the one tax type where freelancers and sole traders most benefit from bill pay, since many don't have corporate cards.

Paying PAYE and National Insurance

Employers' PAYE and NI contributions are due monthly (or quarterly for small employers). These are predictable, recurring payments — ideal for systematic rewards earning.

Direct route: Pay through GOV.UK using your Accounts Office reference number.

Bill pay route: Same process — HMRC bank details, Accounts Office reference, pay by card.

On £3,000/month PAYE/NI:

  • Annual rewards: £360 (at 1% back)
  • Annual bill pay fees: ~£720 (at 1.99%)
  • Net cost: ~£360 for consistent cashflow float

This makes more sense for businesses with seasonal revenue where the float genuinely helps, or when combined with welcome bonus targets.

Best cards for tax payments

For direct HMRC payments:

For bill pay route (any card works):

For hitting welcome bonus targets:

A single large tax bill can get you most of the way to an Amex welcome bonus. A £6,000 corporation tax bill paid via bill pay covers the entire Amex Gold Business welcome spend requirement in one transaction. See our guide to reaching Amex spend targets.

Common questions

Will HMRC know I used a credit card? If paying directly, yes — it's their payment portal. Via bill pay, HMRC receives a bank transfer and won't know a credit card was involved.

Can I pay HMRC late to maximise float? Don't. HMRC charges interest on late payments (currently 7.5%) and penalties for persistent late payment. Pay on time, but time it within your credit card billing cycle.

Is the bill pay fee tax-deductible? Generally, yes — it's a cost of processing a business payment. Check with your accountant for your specific situation.

Getting started

  1. Identify your next HMRC payment (VAT, corporation tax, self-assessment, or PAYE)
  2. Decide: direct payment (business card only) or bill pay (any card)
  3. If using bill pay, sign up and save HMRC's bank details for each tax type
  4. Time the payment just after your card billing cycle starts
  5. Earn rewards and enjoy the cashflow float

For more on how credit cards fit into tax compliance, see our blog post on Making Tax Digital and credit card payments.