Payment of Taxes by Credit Card - Fee for payments made by telephone

Written by Ian Congreave - Filed under: Income Tax, PAYE Procedures on December 4th, 2009

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The Finance Act 2008 made provision for HMRC to accept payment of taxes by credit card but imposed a requirement for the taxpayer to pay a fee that covers the costs incurred by HMRC in handling the payment.

From 14 December 2009, the fee for credit card payments made by telephone is increasing from 0.91%, as set in August 2008, to 1.25%. This reflects the increase in cost for credit card usage by HMRC.

The increase brings the fee for telephone payment in line with that charged since December 2008 for credit card payments over the Internet.

Further information:

The Taxes, etc. (Fees for Payment by Telephone) Regulations 2009

Explanatory Memorandum on the Taxes, etc. (Fees for Payment by Telephone) Regulations 2009