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Maximise Your Avios by Paying HMRC Through Curve
Turn those tax bills into travel rewards with strategic pre-payments
Jack Culpan
December 24, 2024 • Estimated Reading Time: 7 minutes
As we approach the year, many of us are preparing for various HMRC payments. Whether it's VAT, corporation tax, or self-assessment payments, there's a clever way to earn Avios points from these necessary expenses. Let me walk you through how to maximise your rewards while keeping fees minimal.
The Basic Strategy
The key to making this work is combining Curve's Fronted feature with an Avios-earning credit card. Curve allows you to make payments to HMRC (which typically charge a high fee for accepting a credit card) while earning rewards on your preferred card.
What You'll Need
Curve Pay Pro+ subscription (£17.99 per month / £179.90 per year)
Either a Barclaycard Avios Plus (for personal payments) or Capital on Tap Business card (for business payments)
Understanding the Limits
Curve's Fronted allowance is currently £3,000 per calendar month (now changed from 30-day rolling) without fees. Any amount over this incurs a 2.5% fee, which generally isn't worth it for points earning.
Here's where it gets interesting - HMRC allows you to pre-pay your VAT and potentially other tax obligations. This means you could theoretically use your full £3,000 allowance 12 times per year, leading to £36,000 of fee-free payments and significant Avios earning potential.
Annual Earning Potential
Let's break down what you could earn by maximising the full £36,000 annual potential:
Using Barclaycard Avios Plus:
£36,000 in payments = 54,000 Avios (1.5 Avios per £1)
Curve Pay Pro+ annual fee: £215.88 (£17.99 monthly)
Using Capital on Tap Business:
£36,000 in payments = 36,000 Avios (1 Avios per £1)
Curve Pay Pro+ annual fee: £215.88 (£17.99 monthly)
Smart Timing Strategy
The calendar month system makes it easier to plan your payments. Here's how to maximise it:
Make larger payments at the end of one month
Follow up with additional payments at the start of the next month
Plan your pre-payments around month boundaries
Consider setting up a spreadsheet to track payment dates and amounts
For example, if you have a £5,000 VAT bill, you could pay:
£3,000 on January 31st
£2,000 on February 1st
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Pro Tips
Always check your HMRC account balance before making pre-payments
Keep detailed records of pre-payments for your accountant
Remember that pre-payments sit in your HMRC account until needed - consider your cash flow carefully
Special Consideration for Business Owners
If you're a business owner making regular VAT payments, the Capital on Tap Business card (referral link) combined with Curve (referral link) can be particularly valuable. The card has no forex fees and offers additional business-specific benefits.
Is It Worth It?
Let's look at the annual value proposition using the Barclaycard Avios Plus example:
54,000 Avios value: £540-£648 (valuing Avios at 1p-1.2p each conservatively)
Curve Pay Pro+ annual fee: £215.88
Net value: £324.12-£432.12
This doesn't include other Curve Pay Pro+ benefits like 1% cashback on foreign spend, mobile phone insurance and worldwide travel insurance, which could add significant value if you use them.
Final Thoughts
The calendar month system makes this strategy much simpler to manage than a rolling period. The potential to earn significant Avios through pre-payments makes this strategy particularly attractive, especially if you're already planning to maintain a Curve Pay Pro+ subscription for its other benefits.
Remember to view this as a points-earning opportunity on money you need to spend anyway - never compromise your business's cash flow just to earn points. Always consult with your accountant about the implications of pre-paying your tax obligations.
Have you used this strategy for your HMRC payments? I'd love to hear about your experiences in the comments below or over on our Instagram.
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Top 7 Verified Reasons to Bring Cash for International Travel
I traveled for 14 days in Europe visiting Poland, France, Portugal, and Spain. These are the top verified reasons to bring cash while traveling internationally:
Restaurant Tips: We paid by card for most meals. However, in the countries we visited, the card terminal never (99%) gave us the option to leave a tip. The only way to tip is with cash.
Attractions / Experiences: Castle and museum exhibitions with onsite ticket offices only took cash payments.
Street Vendors / Café: There are plenty of delicious snacks offered by street vendors all around the world. The cost can be cheap, but the vendors usually only accept cash.
Shopping: Many vintage shops in Portugal had a cash-only sign, while in Poland, the shop manager was willing to negotiate the price of some keepsakes when paying in cash.
Public Restrooms: In many places in Europe, public restrooms charge a small fee, typically payable only in cash.
Taxi Ride: Taxi and buses may only accept cash. Make sure you have enough cash for fares, especially where rideshare apps aren't available.
Prepare for Emergencies: Card terminals can fail, and credit cards can get fraud-blocked. Having cash ensures you can handle emergencies and make essential purchases without stress or worry.
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