How-to Guides

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

By Afshin · 13 June 2026 · 7 min read

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 UK limited companies offering 1% unlimited cashback, no annual fee, and 0% FX fees on EUR and USD spend. Every pound of normal business spending earns 1% back, effectively funding part of your tax bill over the year.

• 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 is available to UK limited companies (Ltd), LLPs and PLCs that are active on Companies House, with turnover of £24,000 or more and no unsatisfied County Court Judgements in the last 12 months. Applications take around two minutes with an instant decision and a virtual card you can use immediately. Like most business cards, it requires a personal guarantee from a director.

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.