Can you pay council tax or HMRC with a credit card?

HMRC does not accept personal credit cards for tax bills, and you can no longer pay your tax bill at the Post Office¹. That is the short answer for tax. Council tax is different: it is collected by your local council, not HMRC, and whether a credit card is accepted depends on the council. Most councils accept payment by cash, cheque or debit card, and most accept internet or telephone banking, Bacs or standing order, but only some accept credit card payments¹.

Where a council does take a credit card, the card itself can make the payment expensive. A credit card payment that a provider treats as a cash advance can attract a cash advance fee and a higher rate of interest, and you may lose the interest-free period even if you clear the bill in full². The rules on surcharges also matter: organisations are generally not allowed to add a surcharge for paying by consumer debit or credit card, although accepted payment methods vary by council¹.

Council tax by credit card: it depends on your council

There is no single national rule on paying council tax by credit card. Each council sets its own payment methods, and the picture varies. You can pay your bill by cash, cheque or debit card, most councils accept payment via the internet, telephone banking, Bacs or standing order, and some accept credit card payments¹. If your bill carries a barcode, payment at a Post Office or through PayPoint or Payzone may also be available¹.

In Wales, the same pattern applies: you can usually check your balance and pay online, and you can also set up a Direct Debit or a standing order from your bank account⁴. Welsh council tax bills can be paid online, by Direct Debit, or by cash using PayPoint, Payzone or Quickcards⁵. Councils prefer payment by Direct Debit¹, because it spreads the bill and reduces the cost of chasing payments.

Where a council does accept a credit card, it may do so only as a last resort. One council told a consumer publication it would continue to take payments by credit card only if there was no alternative way to pay⁶. That is a useful signal: a credit card is not the standard route, and a council that accepts one may still discourage it.

The practical step is to check your own council's website or your bill for the payment methods it lists. If credit card payment is not offered, the alternatives are debit card, Direct Debit, standing order, online or telephone banking, cash at a PayPoint or Payzone outlet, or cheque.

HMRC does not take personal credit cards

For tax, the position is settled. HMRC does not accept personal credit cards, and you can no longer pay your tax bill at the Post Office¹. The same restriction appears across HMRC's guidance: you cannot pay by personal credit card⁷. For a self-assessment bill, HMRC does not take personal credit card payments for tax, and Post Office payment has ended³.

HMRC's own payment routes are the HMRC app, online or telephone banking, Chaps, debit card online, at your bank or building society, Bacs, Direct Debit, or cheque through the post⁸. To get a payment to its destination on the same or next day, use Faster Payment or Chaps, online, app and telephone banking services, a debit card or a business credit card³. Business credit cards are the exception: HMRC accepts them, and a non-refundable fee applies if you pay by corporate credit card or corporate debit card, while there is no fee for a personal debit card⁷.

The same rule runs through other HMRC collections. For Child Benefit overpayments, you cannot pay by personal credit card, and there is a non-refundable fee if you pay by corporate credit or corporate debit card⁹. For Simple Assessment, customers can pay using the free and secure HMRC app, online via GOV.UK, by bank transfer or by cheque¹⁰.

One boundary worth knowing: HMRC does not deal with council tax issues¹¹. If your query is about council tax, it belongs with your local council, not HMRC.

Fees and charges when paying tax by card

The rules on card surcharges changed in 2018. From 13 January 2018, new rules meant companies as well as local authorities and other government agencies such as HMRC could no longer charge a fee to customers making payments by credit or debit card⁶. In general, organisations are not allowed to add surcharges for paying by consumer debit or credit card, although accepted payment methods can vary by council¹.

There are exceptions. You can still be charged if you are using a business card¹³. That matches HMRC's own position: a non-refundable fee applies to corporate credit and corporate debit cards, but not to a personal debit card⁷. For voluntary repayments, credit card payments attract a surcharge¹⁴.

The legislation behind HMRC's card fees has its own history. The Fees for Payment of Taxes, etc. by Credit Card (Amendment) Regulations 2017 were revoked, and the Fees for Payment of Taxes, etc. by Card Regulations 2020 revoke and replace the 2016 and 2017 credit card fee regulations and increase the range of cards in respect of which a fee is payable to HMRC¹⁵. Under those 2020 Regulations, a person making a payment by a relevant credit card or a relevant debit card to the Commissioners, or a person authorised by them, must pay a fee together with the payment¹⁵.

For a consumer, the surcharge ban means a council cannot add its own fee for paying by consumer credit card. It does not stop your card provider charging you interest, a cash advance fee, or a higher rate on the borrowing.

Cash advance fees and interest: the hidden costs

The cost of paying a bill by credit card is usually not a surcharge at the counter. It is what your card provider charges you. A cash advance is money withdrawn from your credit card, such as at a branch or a cash machine¹⁶. If a payment is processed in a way your provider treats as a cash advance, the costs stack up.

Paying for foreign currency by credit card shows how this works: not only will your card provider charge you a cash advance fee, most will also charge you a higher APR and you will not get an interest-free period even if the bill is repaid in full and on time². The same mechanics can apply to any transaction a provider classes as a cash advance.

Credit card fees generally can include annual fees, balance transfer fees, default fees, fees for cash withdrawals and foreign transaction fees¹⁷. Some cards charge a fee each year for use of the card, added to the amount due¹⁸. You will usually be charged for going over your credit limit, for using the card abroad and for late payments¹⁸.

Interest is the larger cost over time. Borrowing £5,000 at the lowest card rate and repaying it over three years would cost £709 in interest¹⁹. That figure is for a card at the lowest available rate; a cash advance rate is typically higher, and interest on a cash advance usually starts immediately with no interest-free period².

Other ways to pay council tax and HMRC

For council tax, the alternatives are straightforward and usually free. Councils prefer payment by Direct Debit¹, and you can pay by Direct Debit directly from your UK or Channel Islands bank or building society account²⁰. You can usually check your balance and pay online, and you can also set up a Direct Debit or a standing order from your bank account⁴. Cash payment is available through PayPoint, Payzone or Quickcards where the bill supports it⁵.

For HMRC, the accepted routes are the HMRC app, online or telephone banking, Chaps, debit card online, at your bank or building society, Bacs, Direct Debit or cheque through the post⁸. You can no longer pay HMRC at the Post Office or via credit card²¹. The same list appears across HMRC's self-assessment guidance: HMRC app, online or telephone banking, Chaps, debit card online, at your bank or building society, Bacs, Direct Debit or cheque through the post, with no Post Office or credit card option²².

If you cannot pay in full, HMRC offers a payment plan. You can set one up online if you owe less than £30,000²³. The plan is set up by direct debit, and you will need details of the tax you have missed or cannot pay²³. For Simple Assessment, the free and secure HMRC app, online via GOV.UK, bank transfer or cheque remain the routes¹⁰.

Paying by credit card or debit card: how each one works

A debit card takes the money from your current account at the moment of payment. A credit card borrows the money from the card provider, and you repay it later. That difference drives everything else: fees, interest, and what protection applies if something goes wrong.

For HMRC, a debit card is accepted online, and a business credit card can be used, but a personal credit card cannot⁸. A non-refundable fee applies to corporate credit and corporate debit cards, while a personal debit card carries no fee⁷. For council tax, most councils accept debit cards, and some accept credit cards¹.

The cost profile differs too. A debit card payment clears immediately and cannot generate interest, though it can leave your current account short. A credit card payment can generate interest from the day it is treated as a cash advance, at a higher rate than purchases². Credit cards also carry their own charges: annual fees, balance transfer fees, default fees, cash withdrawal fees and foreign transaction fees¹⁷.

If you are weighing up which card to use for everyday spending, the differences between credit cards and debit cards are set out in more detail, and the way interest is charged on a credit card explains why a cash advance costs more than a purchase.

Where card payment protection does not apply

Section 75 of the Consumer Credit Act 1974 gives you a right to hold the credit card provider equally liable with the trader for a breach of contract or misrepresentation, for purchases over £100 and under £30,000²⁴. The range is stated consistently: if you use a credit card to pay in full or partly for goods or services costing between £100 and £30,000, you get valuable protection². If a consumer paid with a credit card, and the cost of the goods or services was between £100 and £30,000, they may be entitled to claim²⁵.

The protection has firm edges. Section 75 does not include cases where the goods or services were bought with a debit card, charge card or prepaid card²⁵. It does not apply to charge cards or debit cards²⁶. If an item cost less than £100 and you paid by credit card, you cannot claim under Section 75, but you can claim under chargeback²⁷. Chargeback is available if you paid by debit card²⁸.

There is also a boundary around payment services. Customers who used a credit facility or credit card to buy goods and services may be able to complain about the quality of those goods and services under section 75, but section 75 might not apply if the customer used a credit card to put funds into a standard e-money account and then used that account to buy something²⁹. That matters if you route a payment through a third party rather than paying the bill directly.

Council tax and tax bills are statutory payments to a public authority, not purchases of goods or services from a trader, so the Section 75 route does not fit the way it does for a purchase. The Section 75 limits and the exclusions are worth reading before assuming a card payment is protected.

If you cannot afford your council tax or tax bill

Contact HMRC as soon as possible if you cannot pay your tax bill; you may be able to pay in instalments depending on your circumstances and affordability³⁰. Contact HMRC as soon as possible if you have missed a tax deadline or know you will not be able to pay a tax bill on time³¹. HMRC's online payment plan is available if you owe less than £30,000, and it is set up by direct debit²³.

For council tax, the consequences of missing a payment escalate. If you miss one of your monthly payments, your council should send you a reminder notice giving you seven days to pay it¹. If you do not pay within seven days, you may be asked to pay the whole year's council tax¹. If you fail to pay your council tax for the third time, you will receive a final notice saying you must pay the whole year's council tax within seven days¹. If you miss a payment, your local council could ask you to pay for the whole year at once, and if you still do not pay, they can take you to court³².

There is help with the bill itself. You might be able to get a Council Tax Discount as well as Council Tax Support³³. You might be able to get Council Tax Support as well as a Council Tax Discount³⁴. If you claim Universal Credit, this does not automatically entitle you to help with your Council Tax, so a separate claim may be needed³². You can contact your local authority's Council Tax department and apply over the phone, online through the local authority's website, or as part of a Universal Credit claim³⁵.

Free, impartial help is available. City Advice covers everything from credit or store cards to council tax arrears, mortgage problems, court fines or bankruptcy³⁶. TaxAid provides information on problems paying a tax debt²³. If you are in serious financial difficulty, the rules on what creditors can and cannot do after bankruptcy are set out by debt charities³⁷.