Payment of Taxes by Credit Card – Fee for payments made over the InternetMonday, December 8th, 2008
The Finance Act 2008 makes provision for HMRC to accept payment of taxes by credit card but imposes a requirement for the taxpayer to pay a fee that corresponds with the costs incurred by HMRC in handling the payment.
In August 2008, new Regulations set the fee for credit card payments made by telephone at 0.91% of the payment.
Further Regulations have now fixed the fee for credit card payments made over the Internet at 1.25% of the payment.
The facility for employers to pay PAYE tax and NICs by credit card has not yet been introduced.
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