Mandatory Electronic Payment
From income tax year 2004/05, large employers must pay their in-year PAYE tax, National Insurance contributions (NIC), Construction Industry Scheme (CIS) and Student Loan (SL) deductions, electronically in full and on time.
Where the employer fails to comply with this legislation HMRC can impose a surcharge.
Electronic Payments
Electronic payment means making monthly payments of PAYE, National Insurance Contributions, Construction Industry Scheme and Student Loan deductions by one of a number of approved electronic methods. All electronic payments from the Income Tax year 2004/05 onwards can be made by the later date of the 22nd of the month.
Large employers (250 or more employees) must arrange to make payment in sufficient time to ensure that HMRC receives cleared funds in our bank account by 22nd. Funds must clear by the previous bank working day where the 22nd falls on a weekend or is a bank holiday. If payment reaches HMRC on the first bank working day after, it will be classed as a late payment.
This later payment date of 22nd also applies to payments made by medium-sized, small or exempt employers who choose to pay electronically. Medium-sized, small or exempt employers who pay by cheque still have a due date of 19th of each month.
A guide to payment dates
The table below provides guidance to help you decide when to initiate your monthly payments. It tells you the
- date by which HMRC must receive cleared funds
- last day for initiating a payment.
The table is only a guide. Your bank or building society may take longer to process the payment and both will operate a cut-off time for initiating a payment that day. This is information you need to find out from your bank or building society.
| 22nd falls on a | We must have cleared funds by | Last day for initiating payment by | |
|---|---|---|---|
| Telephone, Internet, BACS Direct Credit, Bank Giro and Alliance & Leicester Commercial Bank | CHAPS (also Paymaster if you have this facility) | ||
| Monday | Monday 22nd | Thursday 18th | Monday 22nd |
| Tuesday | Tuesday 22nd | Friday 18th | Tuesday 22nd |
| Wednesday | Wednesday 22nd | Monday 20th | Wednesday 22nd |
| Thursday | Thursday 22nd | Tuesday 20th | Thursday 22nd |
| Friday | Friday 22nd | Wednesday 20th | Friday 22nd |
| Saturday | Friday 21st | Wednesday 19th | Friday 21st |
| Sunday | Friday 20th | Wednesday 18th | Friday 20th |
Paying Electronically
The following electronic payment methods are acceptable:
- BACS Direct Credit
- your bank or building society Internet or Telephone Banking Service
- BillPay (debit card over the Internet)
- CHAPS
- Paymaster
Employers who receive a payslip booklet can also pay by
