Stoozing Forum - Paying tax using a CC

cheeryoleary Regular Stoozer Offline Posts: 236 Reading. Better than Sw*ndon. Stoozpot £: 10p	Paying tax using a CC Dec 23^rd, 2008 at 12:00pm http://www.opsi.gov.uk/si/si2008/uksi_20082991_en_1 HMRC levy a 1.25% handling fee for payments by credit card. As I'm PAYE through my employer, I have yet to experience the joy of making a tax return. Is there money to be had here?
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YorkshireBoy Board Moderator Offline Stoozer Posts: 4224 Don't need a Swindon job now! Stoozpot £: 37,000	Re: Paying tax using a CC Reply #1 - Dec 23^rd, 2008 at 1:03pm I'd be wanting to know what 'Merchant Category Code' (MCC) they attach to the payment, ie would it be classed as a cash advance or cash substitute transaction. Anyone know, or done it?
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Rodent

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Re: Paying tax using a CC
Reply #2 - Dec 23^rd, 2008 at 2:43pm

New one on me !
I didn't think they allowed payment by CC .....
If fee = 1.25% then 1% can be clawed back on cashback (eggmoney) so real cost .25% .....

As YB says depends very much how cc co treat tx ?
Worth exporing a bit further as IF classified as a purchase then v good opp to max out a 0% purch card (depending on size of tax bill!!!) Also if you "seriously" overpay HMRC will return as cash WITH interest !!! so with a bit of number crunching i reckon you could easily pull a profit out of the deal !

With the amount of cash i hand over to them i will be looking a bit further into this.... Wink

My tax bill last year was considerably more than the average wage and just few % back would be nice ....

Also worth considering looking at NI contributions as well i guess ?

The Rodent

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YorkshireBoy

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Re: Paying tax using a CC
Reply #3 - Dec 23^rd, 2008 at 2:59pm

Rodent wrote on Dec 23^rd, 2008 at 2:43pm:

New one on me !
I didn't think they allowed payment by CC .....

It's only just come in this month.

Quote:

depends very much how cc co treat tx ?

This is the problem though, because reading the OPSI link you only get one go at it...

"the person must make a single overall payment, consisting of the payment and the fee"

...so you can't even try a dummy run. Undecided

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cheeryoleary Regular Stoozer Offline Posts: 236 Reading. Better than Sw*ndon. Stoozpot £: 10p	Re: Paying tax using a CC Reply #4 - Dec 23^rd, 2008 at 3:07pm Mr. Lewis was/is aware. http://blog.moneysavingexpert.com/2008/01/11/pay-tax-by-credit-card-fantastic-ne... Amex 5% anyone
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Rodent

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Re: Paying tax using a CC
Reply #5 - Dec 23^rd, 2008 at 4:15pm

Okay Update.

Call one Egg:
Payment to HMRC definately treated as purchase.

Call two to HMRC:
Have reached agreement with all major cc co's that tx will be treated as a purchse.

SCOOP !!

I also questioned the fee 1.25% is Quoted for "internet tx" .......so what about phone transactions, after a few minutes chap came back and confirmed phone tx are subject to a lower fee of 0.91% Hahaaaaaaaaaaa Wink

What really Pxxxxs me off is that just last week i paid them nearly 20K as a part payment,

The facilty for cc payments has only been in existence for few weeks, so a bit of planning required to organise things ready for next payment Wink

The Rodent

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Rodent Long Serving Offline Feel the Fear and do it anyway ! Posts: 1903 Rainbows End Stooze Kingdom Stoozpot £: 9.99	Re: Paying tax using a CC Reply #6 - Dec 23^rd, 2008 at 4:49pm YB does this thread warrant being on the "News section " ......? The Rodent
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tipsychick Long Serving Offline stoozing.com Posts: 921 Stoozpot £: 0	Re: Paying tax using a CC Reply #7 - Dec 23^rd, 2008 at 4:51pm Yippeee! Amex 5% here I come. Cashback limited to £200 though, I think.
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Rodent Long Serving Offline Feel the Fear and do it anyway ! Posts: 1903 Rainbows End Stooze Kingdom Stoozpot £: 9.99	Re: Paying tax using a CC Reply #8 - Dec 23^rd, 2008 at 5:01pm Hi TC First 4K payment on Amex (£200 cb) then further payments on next best card at the time The Rodent
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YorkshireBoy Board Moderator Offline Stoozer Posts: 4224 Don't need a Swindon job now! Stoozpot £: 37,000	Re: Paying tax using a CC Reply #9 - Dec 23^rd, 2008 at 5:34pm Rodent wrote on Dec 23^rd, 2008 at 4:49pm: YB does this thread warrant being on the "News section " ......? I've put a link to this thread on the News board (and then locked it to keep all discussion here).
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Clariman Stoozing Admin Offline Co-author of www.stoozing.com Posts: 2745 UK Stoozpot £: 0	Re: Paying tax using a CC Reply #10 - Dec 23^rd, 2008 at 6:16pm Hey this looks good. May take them up on this offer
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cheeryoleary Regular Stoozer Offline Posts: 236 Reading. Better than Sw*ndon. Stoozpot £: 10p	Re: Paying tax using a CC Reply #11 - Dec 24^th, 2008 at 6:39am Can you overpay tax (Can you reclaim tax) Stooze HM Government!
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Rodent

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Re: Paying tax using a CC
Reply #12 - Dec 24^th, 2008 at 12:10pm

cheeryoleary wrote on Dec 24^th, 2008 at 6:39am:

Can you overpay tax (Can you reclaim tax)

Stooze HM Government! Cheesy

Yes you very much can overpay (as a s/e person anyway !) and they pay a "reasonable" amount of interest as well !

Probably one of the safest institutions in the World to keep ypur investments with Grin

I jest not Wink

The Rodent

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cardman Long Serving Offline stoozing.com Posts: 612 Too near to Swindon Stoozpot £: 0	Re: Paying tax using a CC Reply #13 - Dec 24^th, 2008 at 6:21pm Rodent wrote on Dec 23^rd, 2008 at 2:43pm: if you "seriously" overpay HMRC will return as cash WITH interest !!! Are you sure they pay back as cash (to your bank account direct or by cheque) or do they refund to the card, which would negate the CB?
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Rodent

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Re: Paying tax using a CC
Reply #14 - Dec 24^th, 2008 at 7:18pm

cardman wrote on Dec 24^th, 2008 at 6:21pm:

Rodent wrote on Dec 23^rd, 2008 at 2:43pm:

if you "seriously" overpay HMRC will return as cash WITH interest !!!

Are you sure they pay back as cash (to your bank account direct or by cheque) or do they refund to the card, which would negate the CB?

Cardman , nice to see you back !

Answer : Don't know! but have paid by debit card in the past, with overpayment received back as cheque and bacs.

Clearly to pay 30K on a tax bill of 1k is going to raise eyebrows, if not cause problems, but a 50% overpayment left on acc for several months would, i think, get refunded as per normal rebates .................unless of course you know different ?

The Rodent

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