This guide gives you the payment deadlines for Insurance Premium Tax and tells you about your payment options.
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You are responsible for calculating how much Insurance Premium Tax is owed and for paying the tax on time.
You must register for Insurance Premium Tax. Once you've registered HM Revenue & Customs (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 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. You may also have to pay 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
When you make your payment to HMRC it is important that you use the right reference. This makes sure your payment reaches your account and that you won' get reminders after you've paid.
To make a payment you will need to use your Insurance Premium registration number. You can find this on the registration certificate HMRC sends you. It's made up of 5 digits, for example 12345.
Make sure you enter your reference number with no spaces between the characters or it could lead to delays in updating your account.
Paying Insurance Premium Tax by Direct Debit is the most convenient method. Once you have set up a Direct Debit Instruction (DDI), HMRC automatically collects payment from your bank account.
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.
The Banking Industry's Bacs Payment Schemes Ltd (Bacs) has introduced a £20 million cap on single Bacs transactions. If you are making a payment over £20 million you'll need to contact your bank to make alternative arrangements - for example, paying by CHAPS. And you'll need to allow enough time for your transaction to reach HMRC by the payment deadline.
To set up your Direct Debit payments you will need to ask HMRC to send you a DDI. You can do this either in writing or by phone.
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.
HM Revenue & Customs
Central Collection Unit (IPT)
Alexander House
21 Victoria Avenue
Southend
SS99 1AS
Fax: 01702 366562
Tel: 01702 366364
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 covered in this guide.
If you have a credit balance on your record with HMRC when your next return is processed, HMRC will normally only collect the balance owing on your record, not the amount shown on your return. HMRC will tell you if this happens.
If your payment is late you may incur a penalty.
Read more about Insurance Premium Tax filing and payment deadlines: Notice IPT 1 (section 18.2)
You can use your bank or building society services to pay by:
To pay your Insurance Premium Tax using any of these payment methods you'll need to set up the payment details with your bank. You'll need to give them:
Find out HMRC's bank account details
This is a service that has been introduced by the banking industry for sending online or telephone banking payments on the same day or next, providing the value of the payment does not exceed the value limit set by the sending bank.
More about the Faster Payments Service
Information about Faster Payment limits (Opens new window)
If your payment is late you may incur a penalty.
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 paying-in slip. This is more efficient and secure than sending a payment by post.
If paying this way please:
Please allow at least three bank working days for your payment to reach HMRC. Bank working days are Monday to Friday excluding bank holidays.
If you do not have a paying-in slip please contact HMRC either in writing or by phone, quoting your name and Insurance Premium Tax reference number.
HM Revenue & Customs
Central Collection Unit (IPT)
Alexander House
21 Victoria Avenue
Southend-on-Sea
SS9 1AS
Fax: 01702 366562
Tel: 01702 366364
If your payment is late you may incur a penalty.
Read more about Insurance Premium Tax filing and payment deadlines: Notice IPT 1 (section 18.2)
HMRC recommends that you make your Insurance Premium Tax payments electronically using one of the methods covered in this guide. If you use the right reference number electronic payments are more efficient and secure than sending cheques by post.
If you do need to pay by post please:
Please allow at least three working days for the payment to reach HMRC. This allows for any delays in the post outside HMRC's control.
If you do not have a HMRC pre-addressed envelope please send your payment to:
HM Revenue & Customs
Central Collection Unit (IPT)
Alexander House
21 Victoria Avenue
Southend-on-Sea
SS9 1AY
If you are late submitting your return or your payment you may incur a penalty.
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. You can do this by completing your return to show either a 'nil' payment is due or that you are claiming a repayment.
If you are late submitting your return or your payment you may incur a penalty.
Read more about Insurance Premium Tax filing and payment deadlines: Notice IPT 1 (section 18.2)
If you have made your payment electronically using one of the methods covered in this guide you can confirm from your own bank or building society statement that payment has cleared your account.
If you send your payment by post you will need to send a letter with your payment if you want a receipt.
Find out what you can do if you have problems paying HM Revenue & Customs
