How to pay Insurance Premium Tax
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. Paying electronically:
- is safe and secure
- gives you better control over your money
- provides certainty about when your payment will reach us
- avoids postal delays
- may lower your bank charges
- lets you pay at a time convenient to you if you use Internet or telephone banking
- gives you an additional seven days in which to make your payment if you pay by Direct Debit
On this page:
- Update: changes to HMRC bank accounts from 3 September 2009
- Insurance Premium Tax payment deadlines
- Paying by Direct Debit
- Paying by Internet, telephone banking or BACS Direct Credit
- Paying by CHAPS transfer
- Paying by Bank Giro
- Paying by post
- Paying from an overseas account
- Paying with euros
- No payment due
- Correspondence or receipt requests
- Information about the Faster Payment service
- More useful links
Update: changes to HMRC bank account details from 3 September 2009
HMRC bank account details for paying Insurance Premium Tax changed from 3 September 2009. If you make payments by BACS Direct Credit, Internet or telephone banking, CHAPS or from an overseas account the new account details are included below. Please note these for future reference.
HMRC is now using two banks – Citi for BACS Direct Credit, Internet and telephone banking, CHAPS and payments from an overseas account and the Royal Bank of Scotland Group (RBSG) for Bank Giro credits.
If you experience problems using the new account details
HMRC is working closely with the banking industry to ensure their systems are updated to reflect the new HMRC bank account details. However please be aware that not all banks will be able to make the change immediately and for a short period you may need to continue to use the old account details. Please be assured that if this is the case your payment will be received by HMRC and credited to your Insurance Premium Tax account.
Insurance Premium Tax payment deadlines
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 Insurance Premium Tax by Direct Debit
Paying by Direct Debit is more convenient, and gives you up to seven extra calendar days, after the due date on your Insurance Premium Tax return, in which to pay.
In order to pay your Insurance Premium Tax by Direct Debit you will need to set up a Direct Debit Instruction (DDI) and HMRC will automatically collect payment from your bank account seven calendar days following your Insurance Premium Tax Return due date. Bank working days are Monday to Friday excluding bank holidays.
You can either set up the DDI online if you are the person who is authorised to sign Insurance Premium Tax returns, or you can print out a form, complete it and post it to HMRC at the address on the form.
It normally takes five bank working days to set up a Direct Debit. Bank working days are Monday to Friday excluding bank holidays. So, if you want to pay the Insurance Premium Tax due on your return by Direct Debit, you must set up the DDI at least five bank working days before you submit the return online. If you haven’t allowed enough time before you submit your return you will have to pay by another electronic method.
Once HMRC starts to collect your payments by Direct Debit they will appear on your bank statement with the description ‘HMRC Insurance Premium Tax’.
Only the amount shown as due to HMRC on your online return will be collected by Direct Debit. HMRC will not collect any surcharges, interest or penalties this way.
Go to HMRC’s online login page
Paying Insurance Premium Tax by Internet, telephone banking or BACS Direct Credit
You can use your bank or building society services to pay by Internet, telephone banking or BACS Direct Credit (available to businesses that are authorised by their bank to submit files direct to BACS).
To make the payment you will need HMRC’s bank account details given below and your Insurance Premium Tax registration number.
If you pay using any of these methods, your bank will transfer your money electronically to HMRC.
It normally takes three bank working days for payment to reach HMRC. Bank working days are Monday to Friday excluding bank holidays. Some bank and building societies can take longer. You should check with your bank or building society to see how long they take to transfer payment and what their cut-off time is for initiating payment. If they take longer then you will need to initiate your payment earlier.
Providing HMRC bank account details
| Sort code | Account number | Account name |
|---|---|---|
| 08 32 00 | 11963163 | HMRC Insurance Premium Tax |
Bank account changes from 3 September 2009
The account details above were updated on 3 September 2009. Please note these for future reference. You should also arrange to update any templates or transactions that you have stored for online banking purposes.
If you experience problems using the new account details
HMRC is working closely with the banking industry to ensure their systems are updated to reflect the new HMRC bank account details. However please be aware that not all banks will be able to make the change immediately and for a short period you may need to continue to use the old account details. Please be assured that if this is the case your payment will be received by HMRC and credited to your Insurance Premium Tax account.
If your payment is made using the wrong sort code or account number there may be a delay in updating your record or the payment may not be received at all.
Your Insurance Premium Tax reference number
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.
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)
Paying Insurance Premium Tax by CHAPS transfer
The CHAPS system enables you to tell your bank to make an immediate payment that will reach HMRC on the same day provided you initiate payment within the time specified by your bank (usually between 9.00 am and 3.00 pm). Bank working days are Monday to Friday excluding bank holidays.
CHAPS payments are more expensive than other payment methods but may be of benefit if you’re making very large payments.
Providing HMRC bank account details
When using this system you will need to provide HMRC bank details to your bank or building society.
| Sort code | Account number | Account name |
|---|---|---|
| 08 32 00 | 11963163 | HMRC Insurance Premium Tax |
Bank account changes from 3 September 2009
The account details above were updated on 3 September 2009. Please note these for future reference. You should also arrange to update any templates or transactions that you have stored for online banking purposes.
If you experience problems using the new account details
HMRC is working closely with the banking industry to ensure their systems are updated to reflect the new HMRC bank account details. However please be aware that not all banks will be able to make the change immediately and for a short period you may need to continue to use the old account details. Please be assured that if this is the case your payment will be received by HMRC and credited to your Insurance Premium Tax account.
If your payment is made to the wrong sort code or account number there may be a delay before your account is credited or your payment may not be received at all.
Your Insurance Premium Tax reference number
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.
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)
Paying Insurance Premium Tax by Bank Giro
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:
- take your paying-in slip to your own branch (other banks may refuse to accept it or may charge you for this service)
- make cheques payable to ‘HM Revenue & Customs only’ followed by your Insurance Premium Tax reference
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.
Bank account changes from 3 September 2009
From 3 September 2009 HMRC will be using NatWest (part of RBSG) to process payments made by Bank Giro. If you currently pay using this payment method you can continue to use the slips in your current Bank Giro booklet. In due course HMRC will send you a booklet containing the new bank account details. Once you receive this you should use this instead of your old booklet.
Paying Insurance Premium Tax by post
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:
- make your cheque payable to ‘HM Revenue & Customs only’ followed by your Insurance Premium Tax reference number and send it with your Insurance Premium Tax return using the pre-addressed envelope sent by HMRC or to the address below
- do not fold the payslip or cheque and do not fasten them with paper clips or staples or in any other manner
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.
Paying from an overseas account
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.
Bank account changes from 3 September 2009
The account details below were updated on 3 September 2009. Please note these for future reference. You should also arrange to update any templates or transactions that you have stored for online banking purposes.
If you experience problems using the new account details
HMRC is working closely with the banking industry to ensure their systems are updated to reflect the new HMRC bank account details. However please be aware that not all banks will be able to make the change immediately and for a short period you may need to continue to use the old account details. Please be assured that if this is the case your payment will be received by HMRC and credited to your Insurance Premium Tax account.
Providing HMRC bank account details
You will need to provide HMRC bank account details to your bank or building society.
| 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 payment is made using the wrong bank account details there may be a delay before your account is credited or your payment may not be received at all.
Your Insurance Premium Tax reference number
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.
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.
Paying Insurance Premium Tax with euros
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.
Exchange rate to be used for payments
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 366364.
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 366364 to enable them to update your account:
- description of tax being paid – Insurance Premium Tax (IPT)
- your Insurance Premium Tax reference number
- the period the payment relates to
- the sterling liability of the payment
Providing HMRC bank account details
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.
Bank account changes from 3 September 2009
The account details above were updated on 3 September 2009. Please note these for future reference. You should also arrange to update any templates or transactions that you have stored for online banking purposes.
If you experience problems using the new account details
HMRC is working closely with the banking industry to ensure their systems are updated to reflect the new HMRC bank account details. However please be aware that not all banks will be able to make the change immediately and for a short period you may need to continue to use the old account details. Please be assured that if this is the case your payment will be received by HMRC and credited to your Insurance Premium Tax account.
If your payment is made using the wrong bank account details there may be a delay before your account is credited or your payment may not be received at all.
Your Insurance Premium Tax reference number
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.
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)
No Insurance Premium Tax payment due
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)
Insurance Premium Tax correspondence or receipt requests
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.
If you wish to tell HMRC about a change (for example a new address) you will need to include a separate letter with your payment if paying by post, or write to them separately if you have made your payment electronically.
Postal address for correspondence
Central Collection Unit (IPT)
HM Revenue & Customs
Alexander House
21 Victoria Avenue
Southend-on-Sea
SS9 1AY
Information about the Faster Payment service
HMRC is currently unable to receive or make payments using the Faster Payment service, which is offered by some banks.
For a bank’s customer to make a Faster Payment, both banks involved in the transaction need to be members of the Faster Payment Scheme. The Bank of England, which is currently HMRC’s banking supplier, made a decision some time ago to withdraw from the provision of retail banking services to its customers (one of which is HMRC) and has not joined the Faster Payments scheme.
HMRC is in the process of moving its business to a new banking supplier. Following this migration the opportunity for using the Faster Payments service will be reviewed.
More useful links
Find out what you can do if you have problems paying HM Revenue & Customs
