A new piece of legislation – the catchily named The Fees for Payment of Taxes, etc. by Card Regulations 2020 – was placed before the House of Commons on Tuesday and will become law on 1st November.
I don’t think it has an impact on any method of earning miles and points for paying HMRC.
To summarise the impact of the new rules:
The Regulations, with effect from 1st November 2020, revoke and replace the Fees for Payment of Taxes, etc. by Credit Card Regulations 2016 (S.I. 2016/333) and the Fees for Payment of Taxes, etc. by Credit Card (Amendment) Regulations 2017 (S.I. 2017/1262).
Regulation 2 provides that a fee is payable whenever a business credit or debit card is used to make a payment to Her Majesty’s Revenue and Customs (“HMRC”). Under the revoked legislation, a fee was only payable to HMRC in relation to payments with specified business credit cards and was not payable in relation to payments by any debit cards. The Regulations accordingly increase the range of cards in respect of which a fee is payable. The fee is determined by the formula in Regulation 3 and is equal to the sum of the three fees ultimately incurred by HMRC when receiving payment by card.
This means that payments to HMRC using a BUSINESS debit card will, from 1st November, incur a fee. Currently, business debit card payments are free, as are payments by personal debit cards.
Off the top of my head, cards used by HFP readers to generate miles from HMRC are not business debit cards. If anyone thinks otherwise, please let us know.
Want to earn more points from credit cards? – January 2021 update
If you are looking to apply for a new credit or charge card, here are our January 2021 recommendations based on the current sign-up bonus.
British Airways American Express
5,000 Avios for signing up, no annual fee and a companion voucher for spending £20,000 Read our full review
British Airways American Express Premium Plus
25,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review
American Express Preferred Rewards Gold
Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review
The Platinum Card from American Express
30,000 points and an unbeatable set of travel benefits – for a fee Read our full review
Virgin Atlantic Reward+ Mastercard
15,000 points bonus and the most generous non-Amex for day to day spending Read our full review
Earning miles and points from small business cards
If you are a sole trader or run a small company, you may also want to check out these:
American Express Business Gold
20,000 points sign-up bonus and free for a year Read our full review
American Express Business Platinum
40,000 points sign-up bonus and a long list of travel benefits Read our full review
British Airways Accelerating Business American Express
Earn both Avios and BA On Business points with your business spending Read our full review
Capital On Tap Business Rewards Visa
The most generous Avios Visa or Mastercard for a limited company Read our full review
Disclaimer: Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points and do not consider interest rates, service levels or any impact on your credit history. By recommending credit cards on this site, I am – technically – acting as a credit broker. Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to act as a credit broker.