How to pay your HMRC bill with a credit card using Curve by the 31st January deadline 

This article is sponsored by Curve

The deadline for self assessment tax returns is approaching fast. You need to file your return by 31st January 2024 to make the HMRC deadline and avoid any penalties.

If you are a Head for Points reader you are very likely to be keen on the idea of paying your tax bill with a Visa or Mastercard credit card to earn extra points, or even just to manage your cashflow or spread the cost.

Unfortunately HMRC has blocked the use of personal credit cards since 2018. Corporate credit cards are still accepted, but carry a fee ranging from 1.7% – 2.8%.

There is, however, a workaround that makes it possible to pay HMRC with a personal or corporate credit card – and that’s Curve.

You can find out more about Curve here.

What’s Curve? 

Curve is a smart digital wallet that connects your debit and Visa and Mastercard credit cards into one single payment card.

As well as offering cashback rewards and eliminating fees abroad, subject to payment limits, Curve has a unique feature in the form of Curve Fronted.

Curve Fronted enables you to make credit card payments at places where credit cards are not accepted, like HMRC, but debit cards are. You can also use Curve Fronted to pay utility bills, school fees and even rent when debit cards are accepted.

How does Curve Fronted work?

Since Curve operates as a Mastercard debit card, the transaction will be processed by HMRC as a debit transaction, even if a credit card is chosen within the Curve Wallet.

How to pay HMRC with a credit card using Curve

It’s a simple process:

• 1. Download the Curve app 
• 2. Link your Visa or Mastercard credit card
• 3. Switch on the Curve Fronted feature 
• 4. Pay HMRC with Curve

Earn thousands of extra credit card points

The costs for Curve Fronted vary depending on your Curve Card plan.

• Curve Metal (£17.99 per month) allows you to pay £3,000 for free via Curve Fronted per rolling 30 days, with a 2.5% fee thereafter

• Curve Black (£9.99 per month) allows you to pay £1,000 for free via Curve Fronted per rolling 30 days, with a 2.5% fee thereafter

• The free version of Curve has a 2.5% fee for all Curve Fronted transactions

If you collect Avios on the Barclaycard Avios Plus Mastercard, earning 1.5 Avios per £1, you could earn 4,500 Avios per month via Curve Fronted on Curve Metal. This is a good return on your £17.99 Curve Metal fee, even before factoring in other Curve Card benefits which we will cover in a minute.

On Curve Black, you could earn 1,500 Avios per month on the Barclaycard Avios Plus Mastercard via a £1,000 spend on Curve Fronted, for a £9.99 monthly fee.

Just be mindful of your fee-free limits and weigh up the pros and cons to decide whether or not it’s right for you.  If you have large tax bills then you could make a part-payment every 30 days to maximise your Curve Fronted fee-free limit.

If you want to use your corporate credit card to pay HMRC, using Curve Fronted can eliminate the fees charged by HMRC.

A lifeline for freelancers

The power to pay your tax bill with a credit card can be a lifeline for freelancers and self-employed contractors who may want to spread the cost of their tax bill, particularly if they have underestimated the amount owed, or find themselves chasing overdue invoices.

While the 2.5% fee may not always be “worth it for the points”, it may be worth it to help manage your cashflow and most importantly, avoid penalty fines from HMRC. These can reach 4% of your tax bill at Day 30 of non-payment.

If you are using Curve Fronted to help spread the cost of your tax bill, make sure you’re taking advantage of the interest-free period on your credit card to avoid paying sky-high interest rates. These would cancel out the benefits of using Curve Fronted to pay HMRC with a credit card. 

Eliminate credit card fees abroad

Most people don’t use their credit cards on holiday because they know they’re going to be hit with fees every time they tap their card or withdraw cash. Using Curve can actually eliminate fees abroad from all your cards – for good.

You can spend up to £250 per rolling 30 days with the free Curve Standard card. The savings really start ramping up when you look at the premium Curve Black and Curve Metal plans.

With Curve Black, customers can spend up to £2,000 per rolling 30 day fee-free and withdraw up to £500 without ATM charges in the same period. You will also earn Avios or other points on purchases from your underlying rewards credit card.

If you’re using a debit or credit card charging 3% in foreign transaction fees and cash withdrawal fees, using Curve Black could save you up to £75 in fees abroad, every time you travel.

For Curve Metal customers there is no limit to how much you can spend abroad with no fees and you can withdraw up to £1,000 per rolling 30 days. This beats Revolut Metal’s £600 limit and Monzo’s £800 monthly limit. Again, you will also earn Avios or other points on purchases from your underlying rewards credit card.

Curve recently removed weekend surcharges for €, $ and £ transactions. Customers won’t be charged weekend fees unless they’re outside of these currencies.

What really sets Curve apart is the fact you don’t need to change your bank or add yet another credit card to your wallet. You can maximise what’s good about your credit cards (rewards) and offset what’s not so good (fees abroad).

Double up on rewards with cashback

As well as features like Curve Fronted that can help you earn points on your bills, Curve offers cashback, which you can earn on top of your current credit card rewards programs.

Even on the free standard Curve plan, customers earn instant cashback every time they shop at places like Argos, Primark, IKEA, Waterstones and more.

There are also one-off cashback offers that change regularly. You might get 8% cashback at Sainsbury’s one day, and 10% cashback at Costa the next. The good thing about Curve Cashback is that it all builds up neatly in one place – your Curve Cash card. You can save it up over time and spend it pretty much anywhere.

The cashback offering gets stronger as you move into premium Curve plans. Curve Black now offers 1% cashback at six retailers of your choice (up from three) and Curve Metal now offers cashback at 12 retailers (up from six). The list of available retailers includes all the major supermarkets from Aldi and LIDL to Marks and Spencers and Waitrose, your travel essentials like TFL, Trainline and Uber, and global retailers like Apple, ASOS, Amazon. If you have quite high monthly expenses, the 1% cashback alone can offset the cost of your Curve plan. 

Can I get Curve before the HMRC deadline?

Yes, you can download Curve and order your physical card in time to meet the HMRC deadline of 31st January.

Additionally, Curve offers a virtual version that can be added to your mobile wallet, supporting Apple Pay, Google Pay, Samsung, and Huawei devices.

Find out more about Curve here or download the app here.