This guide offers a reminder of Insurance Premium Tax payment deadlines and explains all of the available payment options.
HM Revenue & Customs (HMRC) recommends that you make all of your Insurance Premium Tax payments electronically. HMRC counts all of the payment methods below as electronic apart from payment by post. Paying electronically:
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
You are responsible for calculating how much Insurance Premium Tax is owed and for paying the tax due on time.
You must register for Insurance Premium Tax and once you’ve registered HMRC will send you a return, usually every three months, for you to complete and send back with payment for any tax due.
For overseas insurers who use an agent to deal with their Insurance Premium Tax affairs, the agent must ensure that the return is completed and sent back to HMRC on time.
If the completed return or payment is not received by HMRC by the due date shown on your Insurance Premium Tax return you and/or your agent (in the case of overseas insurers) may incur a penalty. This will be either 5 per cent of the tax due or £250, whichever is the greater, and a penalty of £20 for every day after the due date that the return and full payment remains due.
Read more about Insurance Premium Tax filing and payment deadlines
Find out how to register for Insurance Premium Tax
Paying by Direct Debit is more convenient. Once you have set up a Direct Debit Instruction (DDI), HMRC automatically collects payment from your bank account. If you use this method of payment, it is recommended that you submit your return early so that HMRC can collect your payment by the due date. Bank working days are Monday to Friday excluding bank holidays.
If a return is not received by the due date HMRC will issue an assessment of the amount they think you owe.
If you’re late submitting your return or payment you may incur a penalty and interest may also be charged.
You will need to contact HMRC either by phone or in writing to set up the Direct Debit.
HM Revenue & Customs
Central Collection Unit (IPT)
Alexander House
21 Victoria Avenue
Southend
SS99 1AS
Tel: 01702 366364
Fax: 01702 366562
If you want to pay the Insurance Premium Tax due on your return by Direct Debit, you must set up the Direct Debit in good time. If you haven’t allowed enough time before you submit your return you’ll have to pay by another method.
Only the amount shown as due to HMRC on your Insurance Premium Tax Return will be collected by Direct Debit. HMRC will not collect any interest, penalties or assessment payments this way.
If you have a credit balance on your Insurance Premium Tax account with HMRC when your next return is processed, HMRC will normally only debit your bank account for the balance owing on your account - not the full amount declared on your return. HMRC will advise you if this is occurs.
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 – enter HMRC’s bank account details. You also need to enter your Insurance Premium Tax reference and the payment amount.
Telephone banking – phone your bank/building society and give them HMRC’s bank account details, your Insurance Premium Tax 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 Insurance Premium Tax 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.
| Sort code | Account number | Account name |
|---|---|---|
| 08 32 00 | 11963163 | HMRC Insurance Premium Tax |
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 an Insurance Premium Tax payment you will need your reference number. This is the same as your registration number, which is shown on your Insurance Premium Tax certificate of registration. The reference is made up of five digits, for example 12345 - this reference is only an example and should not be used to make a payment.
It is important that you show the reference number with no gaps between the characters otherwise it could lead to delays in updating your records.
Read more about Insurance Premium Tax filing and payment deadlines: Notice IPT 1 (section 18.2)
If your bank or building society offers the Bank Giro service you can make an Insurance Premium Tax payment at your own bank branch by cheque or cash using a Bank Giro Credit Transfer form. HMRC treats any payment made by Bank Giro as electronic, giving you longer to pay.
If paying this way please:
If you do not have a paying-in slip please contact HMRC either by phone or in writing quoting your name and Insurance Premium Tax reference number.
Central Collection Unit (IPT)
HM Revenue & Customs
Alexander House
21 Victoria Avenue
Southend-on-Sea
SS9 1AS
Tel: 01702 366364
Fax: 01702 366562
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.
HMRC recommends that you make your Insurance Premium Tax 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 paying by post please:
If you are sending a payment to HMRC and do not have an HMRC pre-addressed envelope please send your payment to:
Central Collection Unit (IPT)
HM Revenue & Customs
Alexander House
21 Victoria Avenue
Southend-on-Sea
SS9 1AY
To allow for possible postal delays (for which HMRC is not responsible) please allow at least three working days for the payment to reach them.
You can pay your Insurance Premium Tax electronically in sterling from a bank account outside of the UK. You should check with your bank or building society to see how long it takes to transfer a payment.
You will need to provide HMRC bank account details to your bank or building society.
Please take care if you need to enter HMRC's 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.
| International Bank Account Number (IBAN) | SWIFT Bank Identifier Code (BIC) | Account name |
|---|---|---|
| GB03CITI08320011963163 | CITIGB2L | HMRC Insurance Premium Tax |
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 an Insurance Premium Tax payment you will need your reference number. This is the same as your registration number, which is shown on your Insurance Premium Tax certificate of registration. The reference is made up of five digits, for example 12345 - this reference is only an example and should not be used to make a payment.
It is important that you show the reference number with no gaps between the characters otherwise it could lead to delays in updating your records.
You can pay your Insurance Premium Tax in euros using the Bacs Direct Credit or CHAPS payment methods, including any arrears. Repayments of tax due to you from HMRC will continue to be made in sterling.
The payment figure, shown in sterling on your Insurance Premium Tax return
will need to be converted into euros. HMRC recommends that you use the
UK market selling rate for the day that you are making the payment. You
can get this information from the Financial Times or by phoning HMRC on
Tel 01702 366341.
The risk associated with the exchange rate fluctuations will be your responsibility,
as the decision is yours as to whether you pay in euros or sterling. HMRC
will continue to maintain their accounts in sterling and you will be credited
with the actual sterling value HMRC receives after conversion by their
bankers. The cost incurred by HMRC in converting euro payment into sterling
will be met by HMRC.
You will need to fax the following information to HMRC on Fax 01702 366839 to enable them to update your account:
You will need to provide HMRC bank account details to your bank or building society.
Please take care if you need to enter HMRC's 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.
The account name you should use is ‘Central Taxes euro’.
| Currency | Account name | International Bank Account Number (IBAN) | SWIFT Bank Identifier Code (BIC) |
|---|---|---|---|
| euro | HMRC Central Taxes euro | GB59CITI18500812000768 |
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 an Insurance Premium Tax payment you will need your reference number. This is the same as your registration number which is shown on your Insurance Premium Tax certificate of registration. The reference is made up of five digits, for example 12345 - this reference is only an example and should not be used to make a payment.
It is important that you show the reference number with no gaps between the characters otherwise it could lead to delays in updating your records.
Read more about Insurance Premium Tax filing and payment deadlines: Notice IPT 1 (section 18.2)
You must let HMRC know if you have no Insurance Premium Tax payment due by completing your Insurance Premium Tax Return showing either a ‘nil’ payment due or that you are claiming a repayment.
Read more about Insurance Premium Tax filing and payment deadlines: Notice IPT 1 (section 18.2)
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.
Find out what you can do if you have problems paying HM Revenue & Customs
