Fee for HMRC payments

[tontoro]

Does anyone know what the fee for using a COT card to make HMRC payments is? Now that Curve Metal isn’t worth doing, I assume the fees of using straight COT are too high to bother with?

[The Savage Squirrel]

Yes. It varies per card, so can’t give an exact figure, but try a dummy run and you will see that the HMRC fee for using a corporate credit card alone will destroy any value; and that’s before any fees at COT’s end…

[tontoro]

Thanks, afraid this would be the case. Annoying Fronted has been hobbled, used to do £100k pa through it!

[Jonathans]

I wouldn’t say “destroy any value” as it’s still tax deductible but yes, it’s now marginally more expensive than Curve. I don’t mind actually as it’s still a good way of extracting something (Avios) from my business spend.

[tontoro]

Jonathans wrote:

I wouldn’t say “destroy any value” as it’s still tax deductible but yes, it’s now marginally more expensive than Curve. I don’t mind actually as it’s still a good way of extracting something (Avios) from my business spend.

Would you mind telling me what the fees actually are when you do this?

[BLT]

I tried my capital on tap card yesterday and fee was £17 on £1000 at HMRC so 1.7%

[tontoro]

BLT wrote:

I tried my capital on tap card yesterday and fee was £17 on £1000 at HMRC so 1.7%

thanks, just did the same myself. Not much point paying 1.7p per Avios…

[executiveclubber]

Hmm.. combine the £99 CoT fee with the 1.7% and there surely is a better way to earn Avios with HMRC?

First timers signing up do get 10,500 bonus Avios via HfP though, so it’s worth adding that to your calculations

[optomdad]

Yes but if it for business taxes, there’s already a 32.5% saving. Then the Avios are worth 1p, then the cashflow that has been freed up also has value to those that need it/utilise their overdrafts

[Peter K]

optomdad wrote:

Yes but if it for business taxes, there’s already a 32.5% saving. Then the Avios are worth 1p, then the cashflow that has been freed up also has value to those that need it/utilise their overdrafts

That 32.5% saving will depend on whether sole trader, rate of tax, ltd company etc of course 🙂

[tontoro]

optomdad wrote:

Yes but if it for business taxes, there’s already a 32.5% saving. Then the Avios are worth 1p, then the cashflow that has been freed up also has value to those that need it/utilise their overdrafts

more like 1.15p. Even at 1p it’s pretty uninspiring, unless it’s not your money you’re buying them with…!

[chris@onlineedinburgh.co.uk]

Where did I miss the notification for increased fees from Curve / COT for HMRC payments?

[kt74]

chris@onlineedinburgh.co.uk wrote:

Where did I miss the notification for increased fees from Curve / COT for HMRC payments?

Nothing to do with COT, everything to do with Curve. You would have received an email in mid-September, where the additional fees were buried in the small print on a linked page

There’s a lively debate on the “other payment cards” board, where Curve discussions reside: https://www.headforpoints.com/forums/topic/curve-changes-from-november-10th/