Pay VAT by credit card

Why can't I just pay VAT with my card?

Since January 2018 HMRC has not accepted personal credit cards, and where it takes corporate or business cards it charges a non-refundable fee. So if you want to put your quarterly VAT on a credit card, to hold onto your cash until your clients pay or earn points on a large bill, you need a way to route it. That is what Payko does.

How it works

Three steps, a few minutes, and your VAT is paid.

Enter the payment

Select HMRC on your dashboard, then enter the amount and your VAT registration number as the reference.

Pay by credit card

Pay Payko with your Visa or Mastercard credit card. You see the flat 4.9% fee in full before you confirm.

HMRC gets a bank transfer

We send HMRC a standard bank transfer with your VAT reference, typically the next working day.

Who it's for

Quarterly VAT payers

The return and payment fall due a month and seven days after quarter end, often before your own invoices are paid.

Seasonal and lumpy cashflow

Trades and project businesses whose income arrives in chunks that rarely line up with the VAT deadline.

Rewards-card holders

A VAT bill is one of your biggest regular payments. Worth points or cashback on the right card.

Anyone facing a late-payment penalty

A flat card fee can cost less than an HMRC penalty or an overdraft for the same few weeks.

Why pay your VAT by credit card?

Keep your cash where it is

Paying by credit card can leave the money in your account for up to 56 days, until your card statement is due. How long exactly depends on your card's billing cycle and when in the cycle you pay. Useful when the VAT deadline lands before the money you are owed has come in.

Earn on one of your biggest payments

Quarterly VAT is often the largest single payment a business makes. On a rewards card, that is points or cashback you would otherwise miss.

One flat fee, shown upfront

You see the exact 4.9% fee before you confirm. It works out as a small cost per day over the card cycle, often less than an overdraft or a late-payment penalty. No subscription, you only pay when you use it.

Pay VAT by credit card: FAQ

Can I pay my VAT bill with a credit card?

Not directly. HMRC stopped accepting personal credit cards in January 2018, and where it does take corporate cards it adds its own fee. Through Payko you can pay with a Visa or Mastercard credit card: you pay Payko by card, and HMRC receives a standard bank transfer with your VAT registration number as the reference.

Will HMRC accept the payment normally?

Yes. HMRC receives a normal bank transfer quoting your VAT registration number, exactly as if you had paid from your bank. There is nothing for HMRC to set up and nothing changes on their side.

When is VAT due?

For most businesses on quarterly VAT, the return and the payment are both due one calendar month and seven days after the end of the VAT quarter. Paying by credit card can keep the cash in your account until your card statement is due.

What is the fee?

A flat 4.9% per payment, shown in full before you confirm. No subscription, you only pay when you make a payment. Payments from £100.

Is it safe?

Payments are processed by our payment partner, an FCA authorised payment provider, with 3-D Secure on every transaction. Payko never holds your money.

Payments are processed by our payment partner, an FCA authorised payment provider. Payko never holds your money. This page is general information, not tax or financial advice.