Has Tesco blocked Pay+ debit cards from paying HMRC?

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Last week we ran a long article about Tesco Bank’s new Clubcard Pay+ card.

This is a prepaid debit card – which you load via bank transfer from an app – earning 1 Clubcard point for every £8 you spend on it.

It is not hugely exciting for the majority, as it is only useful if you spend money at places where debit cards are accepted, but not credit cards. What you could do, however, was pay HMRC with it. This gets you a small return on your tax payments.

It looks Tesco Bank was a bit taken aback by the huge number of applications following our article. We tracked over 1,000 clicks to the website.

Yesterday morning I heard the first story of payments to HMRC with Pay+ failing.

Later, another reader got in touch to say that he had called Tesco Bank, to be told that it is no longer being accepted by HMRC. Tesco Bank helpfully let him transfer his pre-loaded funds back into his current account.

Two examples is still a small sample. To be honest, I would have expected more reader emails if Tesco Bank really had pulled the plug. However, there is also one report of problems in the Pay+ thread in our forums.

It is not 100% certain that this route to paying your tax has been closed (the first failure could have been due to the size of the transfer and the second due to a badly trained phone agent). That said, if you were thinking of applying I would hold back until we get more data.

EDIT: the comments below are split between people struggling and those for whom it is working fine. A reader emailed to say he paid £25,000 yesterday with no issues and another has paid £95,000 this week. All very odd. It may be that you need to wait a couple of days after transferring money in before trying to spend it, or that you should build up via some smaller transactions.

Our original article on Tesco Bank’s Pay+ card is here.

You can learn more about Clubcard Pay+ on its website here.

Want to earn more points from credit cards? – October 2024 update

If you are looking to apply for a new credit card, here are our top recommendations based on the current sign-up bonuses.

In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

Barclaycard Avios Plus Mastercard

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Barclaycard Avios Mastercard

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You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review

British Airways American Express Premium Plus

30,000 Avios and the famous annual 2-4-1 voucher Read our full review

The Platinum Card from American Express

40,000 bonus points and great travel benefits – for a large fee Read our full review

Virgin Atlantic Reward+ Mastercard

18,000 bonus points and 1.5 points for every £1 you spend 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 offers:

SPECIAL OFFER: Until 22nd October 2024, the bonus on American Express Business Platinum is increased to up to 80,000 Membership Rewards points, worth 80,000 Avios. You will receive 8 points per £1 spent for the first three months, on up to £10,000 of spending. Click here to read our full card review. Click here to apply.

SPECIAL OFFER: Until 22nd October 2024, the bonus on American Express Business Gold is increased to up to 40,000 Membership Rewards points, worth 40,000 Avios. You will receive 4 points per £1 spent for the first three months, on up to £10,000 of spending. The card is FREE for your first year. Click here to read our full card review. Click here to apply.

American Express Business Platinum

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American Express Business Gold

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Capital on Tap Business Rewards Visa

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British Airways American Express Accelerating Business

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For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback when you spend at least £2,000 per month.