Revised charges for paying HMRC by credit card

The current 1.5% charge is being replaced by a variety of rates

Most clients will choose to pay HMRC using methods that do not attract the fees which are incurred when paying by credit card. 

Those who do choose to pay by credit card will be interested to know that HMRC has introduced a new schedule of fees, replacing the current 1.5% fee. The new rates, detailed below, vary depending on the type of card used and whether the card is a personal or corporate card. The fees for paying using personal credit cards have been reduced and the rates for corporate credit cards have increased. This change is effective from 1 April 2016. 


Personal credit cards 
 

Type of card

Rate

VISA Personal Credit Card

0.415%

MasterCard Personal Credit Card

0.386%

MasterCard World Premium Credit Card

0.374%

MasterCard Signia Premium Credit Card

0.606%

MasterCard Elite Premium Credit Card

0.606%

 

Corporate credit cards 

Type of card

Rate

VISA Business Credit Card

1.508%

VISA Corporate Credit Card

1.744%

VISA Purchasing Credit Card

1.755%

MasterCard Business Credit Card

1.973%

MasterCard Corporate Credit Card

2.248%

MasterCard Purchasing Credit Card

2.406%

MasterCard Fleet Credit Card

2.134%


The secondary legislation is the
Fees for Payments of Taxes, etc by Credit Card Regulations, SI 2016/333 and the rationale for the change is given in the explanatory memorandum. In essence, it is being made to ensure HMRC recovers the costs for credit card use charged by the various card-providers. The rates for personal credit cards are capped to 0.3% of an element (called the “interchange” element) by an EU regulation introduced in December 2015. This cap does not apply to corporate credit cards. 

There is so far no mention of the rates, or this change, on GOV.UK.

Anonymous