This guide explains all of the available payment options for Class 1A National Insurance contributions (NICs) and offers a reminder of the payment deadlines.
If you are looking for guidance on how to make your monthly or quarterly PAYE payments please see the section 'More useful links' at the end of this page
HM Revenue & Customs (HMRC) recommends that you make all of your Class 1A NIC payments electronically. HMRC counts all of the payment methods below as electronic apart from payment by post. Paying electronically:
You may be charged penalties if you do not pay your Class 1A NICs payment on time and in full.
On this page:
From 16 December 2011 HMRC will be able to accept payments made using the Faster Payments Service (FPS).
FPS is a service that has been introduced by the banking industry that allows payments by internet or telephone banking to be received on the same or next day, provided the value of the payment does not exceed the limit set by your own bank or building society.
Before making a payment using FPS you should contact your
bank or building society to confirm the services available to you,
any daily value limits and latest cut off times for making a payment.
More about Faster Payments Service
Your cleared payment must reach HMRC's bank account no later than 22 July. Where 22 July falls on a weekend or bank holiday, you must ensure that your payment arrives no later than the last bank working day before 22 July, unless you make payment using the Faster Payment Service (FPS). Before making a payment using FPS you should contact your bank or building society to confirm the services available to you, any daily value limits and latest cut off times for making a payment. Bank working days are Monday to Friday excluding bank holidays.
Your cheque payment must reach HMRC no later than 19 July. If you pay late, interest will be charged.
More about PAYE/National Insurance contributions payment deadlines and interest charges
In order to help you pay on time, you might want to visit the Business Link website where you can create a calendar of key tax deadlines for the next 12 months. You can also sign up to receive regular email alerts as each date approaches.
Set up tax deadline email alerts (Opens new window)
If you're registered for PAYE Online for employers you can set up a Direct Debit for HMRC to collect your Class 1A NICs payments. This method allows you to set up future payments as soon as you know how much is due - for example when the payroll run is completed.
HMRC will only ever collect the amount you ask them to by Direct Debit.
HMRC recommends that you pay by Direct Debit because:
Find out about the Direct Debit Guarantee
To register for PAYE for employers Online please go to the Welcome to Online Services page on the HMRC website.
Once registered you can start setting up Direct Debit payments right away - you don't have to wait for the Activation PIN which is needed to file your tax return online. However, the service must be activated within 28 days to ensure you have access to the Direct Debit online next time you want to make a payment so please make sure you activate the service when you receive your PIN.
The first time that you set up a Direct Debit payment with us you need to allow at least five bank working days before the date you wish to make your payment. This is to allow enough time for your bank or building society to set up a Direct Debit Instruction so that payments can be collected by HMRC. You only need to allow at least three bank working days once the Direct Debit Instruction is in place Bank working days are Monday to Friday excluding bank holidays. If you haven't allowed enough time for your payment to be collected by Direct Debit please use one of the other electronic payment methods described in this guide.
Please note that it may be up to 36 hours before you can see the details of the a Direct Debit payment which you have set up online.
To be able to set up a Direct Debit online you must be able to authorise Direct Debits from the bank/building society account on your own. If the account that you intend to make payments from requires more than one signature HMRC recommend that you speak to your bank or building society to see if they would be happy for just one of the signatories to set up a Direct Debit Instruction/payment in favour of HMRC. You would then be able to do this online.
If your bank or building society will not give approval then please use one of the other electronic payment methods described in this guide.
If you are an agent you must be an authorised signatory on your client's bank account to set up a Direct Debit Instruction (DDI) online on their behalf.
Note: If you pay your monthly or quarterly PAYE by Direct Debit please do not add your Class 1A NICs payment to this amount, as the Class 1A NICs payment will not be identified and you will continue to receive reminders even though you have paid.
To set up a Direct Debit Instruction from the HMRC home page:
You only need to set up another Direct Debit Instruction during a subsequent visit if you want payments to come out of a different bank/building society account. If you are paying from the same bank account please set up further payments by:
Your Direct Debit payment will appear on your bank statement with the description 'HMRC NDDS'.
As the payment you make in July will always be for a previous deduction year, your Accounts Office reference number needs to show the year and month that the payment relates to. For example, to make a payment in July 2011, for your 2010-11 Class 1A National Insurance (the previous year) you will need to enter 1113 in the 'Year end and month' box.
The last four digits are essential and ensure your payment goes to the correct year. If you do not provide them your payment will automatically go to the current deduction year instead. And you will be sent a demand for your Class 1A National Insurance contributions payment.
You can amend or cancel a Direct Debit payment that you have set up online up to three bank working days before the payment date.
More about PAYE/National Insurance contributions payment deadlines and interest charges
If you have a debit or credit card from a UK card issuer, you can pay your Class 1A National Insurance contributions over the internet using the BillPay service provided by Santander Corporate Banking (previously Alliance & Leicester Commercial Bank).
If you wish to pay by credit card a non-refundable transaction fee of 1.4 per cent will be added to the charge. Any charge of less than £0.01 will be rounded up to one penny.
HMRC does not accept American Express or Diners Club cards.
To make a payment you will need your:
Your Class 1A NIC payments are year specific so please see the following section on how to make sure your payment is allocated to the correct year.
As the payment you make in July will always be for a previous deduction year, your Accounts Office reference number needs to show the year and month that the payment relates to. For example, to make a payment in July 2011, for the year 2010-11 (the previous year) you need to select:
Note: the BillPay service is unable to accept 'Month 13' so please use 'Month 12' instead.
The information about the tax year and month is essential and ensures that your payment goes to the correct year. If you do not add them to your Accounts Office reference, your payment will automatically go to the current deduction year instead. And you will be sent a demand for your Class 1A National Insurance contributions payment.
You can check the number using HMRC's online checker tool below.
Further information on making a debit or credit card payment (Opens new window)
Make a payment or register on the BillPay service (Opens new window)
The BillPay service is a Santander Corporate Banking (previously Alliance & Leicester Commercial Bank) product. HMRC will liaise with the supplier in the unlikely event that there are difficulties with access or service availability.
More about PAYE/National Insurance contributions payment deadlines and interest charges
You can use your bank or building society services to pay by:
Bacs Direct Credit - your payment is transmitted by Bacs direct to HMRC’s bank account. This service is only available for customers whose businesses are authorised by their bank to submit files direct to Bacs. It normally takes three bank working days for a payment by Bacs Direct Credit to reach HMRC. Bank working days are Monday to Friday excluding bank holidays.
Internet banking – select ‘HM Revenue & Customs’ from your bank/building society’s beneficiary list (sometimes called a ‘payee list’) or use HMRC’s bank account details to set up a manual instruction. You also need to enter your Accounts Office reference and the payment amount. When using your bank or building society’s beneficiary list, please ensure you take care in selecting the correct HMRC entry for the payment you want to make.
Telephone banking – phone your bank/building society and give them HMRC’s bank account details, your Accounts Office reference and the amount to pay.
Faster Payments – this is a service that has been introduced by the banking industry for sending payments initiated by internet or telephone banking on the same or next day, providing the value of the payment does not exceed the value limit set by the sending bank.
Before making a payment you should contact your bank or
building society to confirm the services available to you, any daily
value limits and the latest cut off times for making a payment.
More about the Faster Payments Service
Information about Faster Payment limits (Opens new window)
CHAPS – this enables you to tell your bank to make a payment that will reach HMRC on the same day provided you initiate the payment within the time specified by your bank (usually between 9.00 am and 3.00 pm). CHAPS payments are more expensive than other payment methods but may be of benefit if you are making very large payments.
To pay your Class 1A NIC contributions using any of the above payment methods you'll need to set up the payment details with your bank. You'll need to supply them with:
When making a payment to HMRC please make sure you always use the correct bank account details and reference number. And that your bank has confirmed that your payment has been made successfully.
If you make a mistake with the sort code or account number there may be a delay before your record is credited or your payment may not be received at all. That could mean you are charged a penalty, interest or surcharge for late payment.
When paying by Bacs Direct Credit, internet or telephone banking, Faster Payments or CHAPS you should only use the bank account details shown below and not the account number shown on the front of your HMRC payslip as this sort code is only for payments made by Bank Giro or at a Post Office.
Accounts Office |
Sort code |
Account number |
Account name |
|---|---|---|---|
Cumbernauld |
083210 |
12001039 |
HMRC Cumbernauld |
Shipley |
083210 |
12001020 |
HMRC Shipley |
If your bank asks for the address of the bank to which payment is being made please use
Citi
Citigroup Centre
Canada Square
Canary Wharf
London
E14 5LB
When paying Class 1A National Insurance contributions by Bacs Direct Credit, internet or telephone banking, Faster Payments or CHAPS you will need to provide your Accounts Office reference number. This is printed on the payslip HMRC sends you in the format 123PA000123451113 – this reference is only an example and should not be used to make a payment.
As the payment you make in July will always be for a previous deduction year, your Accounts Office reference number needs to show the year and month that the payment relates to. For example, to make a payment in July 2011, for the year 2010-11 (the previous year) add 1113 to your Accounts Office reference 123PA00123451113 – this reference is only an example and should not be used to make a payment. It's important that you don't leave any gaps between the characters in the reference number otherwise it could lead to delays in updating your record.
Note: you should always show the month as 13.
The last four digits are essential and ensure your payment goes to the correct year. If you do not add them to your Accounts Office reference, your payment will automatically go to the current deduction year instead. And you will be sent a demand for your Class 1A National Insurance contributions payment.
You can check the number using HMRC's online checker tool below.
Check your Class 1A National Insurance contributions reference number using HMRC Reference Checker
More about PAYE/National Insurance contributions payment deadlines and interest charges
If your bank or building society offers the Bank Giro service you can make a payment of Class 1A National Insurance contributions at your own bank branch by cheque or cash. HMRC treats any payment made by Bank Giro as electronic.
If paying this way please:
To allow for possible delays in bank processing (for which HMRC is not responsible) please allow at least three bank working days for your payment to reach them. Bank working days are Monday to Friday excluding bank holidays.
When paying by Bank Giro please only use an official HMRC payslip. HMRC payslips contain the correct HMRC bank account information and ensures payment reaches your account on time.
More about PAYE/National Insurance contributions payment deadlines and interest charges
You can make a Class 1A National Insurance contributions payment at the Post Office by cheque, cash or debit card without charge. HMRC treats any payment made at the Post Office as electronic.
If paying this way please:
To allow for possible delays in bank processing (for which HMRC is not responsible) please allow at least three bank working days for your payment to reach them. Bank working days are Monday to Friday excluding bank holidays.
More about PAYE/National Insurance contributions payment deadlines and interest charges
HMRC highly recommends that you make your Class 1A National Insurance contributions payments electronically using one of the methods described elsewhere in this guide. Electronic payments are generally more efficient and secure, provided you use an accurate reference number.
However if paying by post please:
To allow for possible delays in postal processing (for which HMRC is not responsible) please allow at least three working days for your payment to reach them.
If you are sending a payment to HMRC and do not have a pre-addressed HMRC envelope please send your payment to:
HM Revenue & Customs
Bradford
BD98 1YY
More about PAYE/National Insurance contributions payment deadlines and interest charges
HMRC will only accept a postdated cheque in the following circumstances:
Because of the highly automated operations used for processing postal payments HMRC can only identify a postdated cheque if there is a letter with it.
If you don't send a covering letter HMRC won't recognise that the cheque is postdated and will present it straight away.
You can pay your Class 1A National Insurance contributions electronically from a bank account outside the UK. You should check with your bank or building society to see how long they take to transfer a payment.
You will need to give your bank or building society HMRC's bank account details - these are the same as you use for your monthly or quarterly PAYE/National Insurance contributions payments.
Please take care if you need to enter HMRC bank account details. If you make a mistake with the sort code or account number there may be a delay before your record is credited or your payment may not be received at all.
When making a payment from abroad you should not use the account number shown on the front of your HMRC payslip as this sort code is only used for payments made by Bank Giro or at a Post Office. You should provide your bank with HMRC’s international bank account details as shown below.
The account name you should use is 'HMRC Shipley'.
Currency |
International Bank Account Number (IBAN) |
SWIFT Bank Identifier Code (BIC) |
|---|---|---|
Sterling and foreign currencies (including euro) |
GB05CITI08321012001020 |
CITIGB2L |
The account name you should use is 'HMRC Cumbernauld'.
Currency |
International Bank Account Number (IBAN) |
SWIFT Bank Identifier Code (BIC) |
|---|---|---|
Sterling and foreign currencies (including euro) |
GB74CITI08321012001039 |
CITIGB2L |
Note: Where an IBAN is shown you must give this number as well as the SWIFT BIC.
If your bank asks for the address of the bank to which payment is being made please use
Citi
Citigroup Centre
Canada Square
Canary Wharf
London
E14 5LB
When making Class 1A National Insurance contributions by CHAPS payment you will need to provide your HMRC Accounts Office reference number. This is printed on the payslip HMRC sends you to make a Class 1A National Insurance contributions payment and is in the format 123PA000123451113 - this reference is only an example and should not be used to make a payment. It's important that you don't leave any gaps between the characters in the reference number you enter otherwise it could lead to delays in updating your record.
As the payment you make in July will always be for a previous deduction year, your Accounts Office reference number needs to show the year and month that the payment relates to. For example, to make a payment in July 2011, for the year 2010-11 (the previous year) add 1113 to your Accounts Office reference 123PA000123451113 - this reference is only an example and should not be used to make a payment.
Note: you should always show the month as 13.
The last four digits are essential and ensure your payment goes to the correct year. If you do not add them to your Accounts Office reference, your payment will automatically go to the current deduction year instead. And you will be sent a demand for Class 1A National Insurance contributions payment.
You can check the number using HMRC's online checker tool below.
Check your Class 1A National Insurance contributions reference number using HMRC's reference checker
More about PAYE/National Insurance contributions payment deadlines and interest charges
Employers such as government departments and health authorities who have an account with the Government Banking Service (GBS) can make Class 1A NICs payments using the GBS on line service. This will transfer the funds direct to HMRC's GBS bank account.
Provided you initiate payment within the time specified by GBS HMRC will receive payment on the same day.
Please take care if you need to enter HMRC's bank account details. If you make a mistake there may be a delay before your record is credited or your payment may not be received at all.
When making a Class 1A National Insurance contributions payment through GBS Transfer you will need to provide your HMRC Accounts Office reference number. This is printed on the payslip HMRC sends you to make a Class 1A National Insurance contribution payment and is in the format 123PA000123451113 - this reference is only an example and should not be used to make a payment. It's important that you don't leave any gaps between the characters in the reference number you enter otherwise it could lead to delays in updating your record.
As the payment you make in July will always be for a previous deduction year, your Accounts Office reference number needs to show the year and month that the payment relates to. For example, to make a payment in July 2011, for the year 2010-11 (the previous year) add 1113 to your Accounts Office reference 123PA00123451113 - this reference is only an example and should not be used to make a payment.
Note: you should always show the month as 13.
The last four digits are essential and ensure your payment goes to the correct year. If you do not add them to your Accounts Office reference, your payment will automatically go to the current deduction year instead. And you will be sent a demand for your Class 1A National Insurance contributions payment.
You can check the number using HMRC's online checker tool below.
Check your Class 1A National Insurance contributions reference number using HMRC reference checker
More about PAYE/National Insurance contributions payment deadlines and interest charges
In order to minimise costs to all taxpayers HMRC does not automatically issue receipts for payments.
If you have made your payment electronically using one of the methods described elsewhere in this guide you can confirm from your own bank or building society statement that payment has cleared your account.
However, if you are paying HMRC by post and you need to ask for a receipt, include a separate letter with your payment. HMRC cannot identify any instructions written on payslips as they are processed automatically.
If you pay your Class 1A National Insurance contributions electronically you will not need a payslip, unless you are paying at a bank or Post Office. HMRC recommends that you make your Class 1A National Insurance contributions payments electronically using one of the methods described elsewhere in this guide. Electronic payments are generally more efficient and secure, provided you give HMRC an accurate reference number.
However, if you are paying by post and you don't have a payslip, these details should accompany your payment:
You should then send your payment to the contact details described in the 'Paying by post' section of this guide.
Guidance if you have a problem making a PAYE payment
More about PAYE/National Insurance contributions payment deadlines and interest charges
