Guide to Paying Your UK Tax Bill with a Credit Card

Credit Card Payments to HMRC

As of 2018, HM Revenue & Customs (HMRC) has placed restrictions on the ability to pay tax bills using personal credit cards. This guide aims to introduce an alternative method for individuals and businesses within the UK to efficiently manage their tax payments.

Enter Curve Fronted for Tax Payments

Overcoming Restrictions

Curve Fronted offers a solution that allows for tax payments via credit card when direct payments to HMRC are not an option.

Cash Flow Management

This is particularly useful for freelancers and self-employed professionals who need to spread out their tax bill payments.

Reward Optimization

Make the most of your credit card's rewards programs by earning points, air miles, and more through tax payments.

How to Set Up Curve for Tax Payments

1. Download the Curve app, which serves as a comprehensive digital wallet.
2. Add your credit, debit cards, and PayPal to the Curve Wallet.
3. Enable the Curve Fronted feature within the app to make payments to HMRC possible.
4. Select the credit card in the Curve app you wish to use for payment.

Factors to Consider Before Paying Taxes with a Credit Card

• HMRC imposes a 4% penalty for late tax payments after 30 days, underscoring the importance of timely payments.
• Curve transactions include a 2.5% fee for standard users, though fee waivers are available for premium account holders.

Understanding Curve's Fee Structure

• Curve Black and Curve Metal users enjoy fee allowances, making tax payments more cost-effective.

  • Curve Black: £1000 fee-free allowance every 30 days.
  • Curve Metal: £3000 fee-free allowance every 30 days.

Earning Rewards on Tax Payments

Using Curve Fronted allows taxpayers to earn valuable rewards on HMRC payments, potentially offsetting fees and maximizing credit card benefits.

Conclusion

Curve Fronted offers a novel approach for UK taxpayers, enabling the use of credit cards for HMRC payments. This method helps balance cash flow needs with the chance to earn rewards, emphasizing the importance of staying informed on payment methods and their financial implications.

You can try Curve here