Pros And Cons Of Using Your Credit Card To Pay Your Personal Tax Bill (Via CardUp)
We all know that taxes help fund important government expenditure that we all take advantage of, which the majority of people receive more in public places grants, transfers and subsidies than the taxes they pay.
But the yearly ritual of paying our personal tax bill is not unlike undergoing a medical check-up – you know its good for you, but it is still unpleasant. But since we have to do it anyway, we figured why don't you earn some charge card rewards while we contribute to nation-building?
Here's where CardUp comes in.
Watch: Taxes Are Essentially Wealth Transfers From The Richer Towards the Not-So-Rich. How come Many people Like Us Hate It A lot?
How To make use of Credit Cards To pay for Your individual Tax Bill To IRAS
According to IRAS, the only real accepted means of paying your income tax bill is via GIRO, AXS, SAM, online banking, an ATM, or NETS at any SingPost branch.
However, the clever folks at CardUp have devised a totally legal way to allow you to pay for your income tax using your charge card, for a small charge.
For tax payments scheduled between now till 30 April 2021, new users (or users who've not made a payment before) enjoy a promotional fee of just 1.8% on their recurring (as much as 6 times) tax payment when they redeem their promo code on CardUp, valid for all Singapore-issued Visa cards, Due date of tax payments should be 31 December 2021 in the latest.
Existing users can enjoy a fee of two.25% on their own tax payments (or all payments) scheduled between now till 31 December 2021 using the code GET225. Again, this is applicable to any or all Singapore-issued Valid on Visa, Mastercard and China UnionPay cards. Due date of tax payments must be 5 January 2022 at the latest.
Finally, users who wish to use their American Express cards to cover their income tax bill can register here to savor a charge of 2.6% and much more information is going to be disclosed upon sign up.
Aside from income tax, you may also use CardUp for recurring bills like rental payments, insurance premiums, or foreign domestic worker salaries, simply to name some.
#1 Fulfil Qualifying Charge card Spend Requirement of High-Interest Savings Accounts
Given the fact that we're all now working from home there aren't lots of places to use our charge cards, many people might find it suddenly harder to hit their minimum qualifying spend to earn higher interest on their savings accounts.
By using CardUp, now you can pay for your income tax, which is a substantial expense, while allowing it to count towards qualifying spend that you need.
#2 Clock Up Charge card Spend To Be eligible for a Bonus Miles Or any other Rewards
On certain charge cards, you can receive bonus welcome air miles or cashback credit, if you charge a particular minimum amount inside the first couple of months.
With departure date retail therapy on hold for the foreseeable future, CardUp allows you to still clock in the spending you were relying on.
Furthermore, with the uncertain economy, you may be rightly unwilling to make fresh expenditure on new items, while your income goverment tax bill is one thing you already need to pay for.
#3 Take Advantage Of Promotional CardUp Fees
In the past, the two.6% fee charged by CardUp was a point that required careful calculation and planning, because it only is sensible if the benefit from your charge card spend must be higher than the charge you have to pay.
However, the promotional rates of 1.8% to two.25% (non-Amex) on income tax payments using promo codes means it can make financial sense for a larger pool of individuals, and people who already plan to use CardUp at the regular fee would simply enjoy increased savings.
Are There Disadvantages Of Using CardUp For the Tax Bill?
The obvious disadvantage of CardUp is the processing fee you will be paying. As mentioned earlier, the value from the air miles, cashback or bonus appeal to you earn must be greater than the CardUp fee you will be paying.
To help you evaluate whether it is worth it for you personally, CardUp includes a handy calculator online which you can use.
Another potential issue you might face is that CardUp uses variable Merchant Category Codes (MCC), which means you cannot utilize it to hit a particular type of spend reliably, though the CardUp team is going to be happy to assist you if you have any queries.
Earn Rewards In your Personal Income Tax Payment And Other Bills Today
The mixture of COVID-19 curtailing our regular spending patterns, the economical recession making us rethink our spending plans, and CardUp's promotional rates for paying our income tax bill to IRAS makes it a very compelling option right now.
You can click on CardUp to learn more and sign-up for any free CardUp account to start utilizing it to stay your recurring bills, make payments for your landlord or foreign domestic helper, and fulfil your duty like a responsible tax-paying citizen.