Can I pay my VAT bill with a credit card?

Not with a personal credit card — HMRC stopped accepting those in January 2018. You can pay VAT with a corporate (commercial) credit card, but HMRC charges a non-refundable fee. Many UK limited companies instead earn 1% cashback on expenses with a card like Capital On Tap and pay VAT directly by bank transfer.

Does HMRC charge a fee for card payments?

Personal debit cards are free. Corporate debit and corporate credit cards carry a non-refundable processing fee that HMRC recalculates periodically. Personal credit cards are not accepted at all.

What is the best business credit card for managing tax cashflow?

For UK limited companies, Capital On Tap is a strong choice: 1% unlimited cashback, no annual fee, 0% FX fees and limits up to £250,000. Apply with code 2REFY893A52 to also receive a £75 welcome bonus after your first transaction.

How-to Guides

Can You Pay HMRC With a Business Credit Card? (UK 2026)

By Afshin · 13 June 2026 · 7 min read · Updated 2026-07-28

Every UK limited company hits the same cashflow squeeze: a VAT or Corporation Tax bill lands just as you need to pay suppliers, staff and stock. So can you simply pay HMRC on a business credit card and spread the cost? The honest answer for 2026 is nuanced — and there is a smarter way to use a card that most directors miss.

Can you pay HMRC with a credit card in 2026?

Since 13 January 2018, HMRC no longer accepts personal credit cards for any tax payment. This followed the ban on card surcharges, which made personal credit card payments uneconomical for HMRC to accept.

However, HMRC does still accept corporate (commercial) credit cards and corporate debit cards. The catch is a non-refundable processing fee, which HMRC recalculates periodically based on the card type. Personal debit cards remain free, while corporate debit and credit cards carry a charge.

Which taxes can a limited company pay this way?

If you choose to pay on a commercial card, HMRC accepts card payments for the main business taxes a UK limited company faces: VAT, Corporation Tax, and PAYE and National Insurance. You will need your relevant payment reference, for example your VAT registration number or Corporation Tax reference.

Before you pay, weigh the HMRC fee against any benefit. If the processing fee is higher than the cashback you would earn, paying tax directly on the card rarely makes sense on its own.

The smarter strategy: free up cash, earn cashback

Rather than paying HMRC on a card and absorbing the fee, most savvy directors do the opposite. They put day-to-day business spending — stock, fuel, software, travel, supplier invoices — on a cashback business card, then use the freed-up cash in their current account to pay HMRC directly by bank transfer or Direct Debit, which is free.

Capital On Tap is built for exactly this. It is a Visa business card for eligible UK companies; the issuer advertises 1% cashback on card spend, no annual fee and no FX fees on its standard card, subject to current terms. Every pound of eligible business spending can earn rewards, subject to the issuer's terms.

Put recurring expenses on the card and earn 1% cashback on everything
Keep cash in the bank to pay HMRC directly with no card fee
Use the interest-free period to bridge the gap to your tax deadline
Export statements straight to Xero for clean VAT and Corporation Tax records

Why Capital On Tap suits UK limited companies

Capital On Tap lists active UK Ltd, LLP and PLC businesses among its eligible structures. The application asks for average monthly turnover, but the issuer's public pages differ on a numeric minimum. It also publishes applicant, CCJ and industry criteria; approval and any offer depend on its full assessment.

Credit limits run up to £250,000, so even larger quarterly VAT or Corporation Tax cycles can be comfortably managed by routing spend through the card and paying it off in full each month.

Claim your £75 bonus

If you run a UK limited company and want a card that turns everyday tax-deductible spending into cashback, applying with referral code 2REFY893A52 adds a 7,500-point welcome bonus (worth around £75) after your first card transaction — on top of the standard 1% cashback and no annual fee.

Frequently asked questions

Can I pay my VAT bill with a credit card?: Not with a personal credit card — HMRC stopped accepting those in January 2018. You can pay VAT with a corporate (commercial) credit card, but HMRC charges a non-refundable fee. Many UK limited companies instead earn 1% cashback on expenses with a card like Capital On Tap and pay VAT directly by bank transfer.
Does HMRC charge a fee for card payments?: Personal debit cards are free. Corporate debit and corporate credit cards carry a non-refundable processing fee that HMRC recalculates periodically. Personal credit cards are not accepted at all.
What is the best business credit card for managing tax cashflow?: For UK limited companies, Capital On Tap is a strong choice: 1% unlimited cashback, no annual fee, 0% FX fees and limits up to £250,000. Apply with code 2REFY893A52 to also receive a £75 welcome bonus after your first transaction.

Ready to apply?

Potential reward: 7,500 points worth £75 with code 2REFY893A52

Use the referral link; it carries the code. Check that the code appears in the application and enter it manually only if it is missing. Any reward is subject to current terms. See the full referral guide.

Apply with referral link →