This guide explains all of the available payment options for PAYE late payment penalties 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 your PAYE late payment penalty payment 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
If a penalty is due, HMRC will send you a late payment penalty notice telling you how much you owe. On receipt of the penalty notice you have 30 days to either pay or appeal. Full details of how to make payment are included with the penalty notice.
Find out more about late payment penalties
If you're registered for PAYE Online for employers you can set up a Direct Debit for HMRC to collect your PAYE late payment penalty payment.
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 (PDF 49K)
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 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 that you intend to make payments from.
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 PAYE late payment penalty to this amount, as the penalty payment will not be identified and you will continue to receive reminders even though you have paid. When paying your PAYE late payment penalty by Direct Debit please use your penalty reference number as shown on your late payment penalty notice.
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'.
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.
If you have a debit or credit card from a UK card issuer, you can pay your PAYE late payment penalty 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 a penny.
HMRC does not accept American Express or Diners Club cards.
A BillPay payment takes three bank working days to reach HMRC. Bank working days are Monday to Friday excluding bank holidays.
To make a payment you will need your:
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.
Check your PAYE late payment penalty reference with the HMRC reference checker
For 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)
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 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 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 PAYE late payment penalty 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.
These account details are only for payment of PAYE late payment
penalties, and should not be used to make monthly or quarterly
PAYE payments.
| Accounts Office | Sort code | Account number | Account name |
|---|---|---|---|
| Shipley | 08 32 10 | 12001020 | HMRC Shipley |
If your bank asks for the address of the bank to which payment is being made please use
Citi
Citgroup Centre
Canada Square
Canary Wharf
London
E14 5LB
When paying your PAYE late payment penalty you'll need to provide your penalty reference number. You'll find this printed in the format XA123456789012 (this reference is only an example and should not be used to make a payment) on the late payment penalty notice HMRC send you.
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.
Note: Please do not use your PAYE Accounts Office reference to make your payment, as the penalty payment will not be identified and you will continue to receive reminders even though you have paid.
If your bank or building society offers the Bank Giro service you can pay your PAYE late payment penalty 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 ensure payment reaches your account on time.
You can pay your PAYE late payment penalty 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.
HMRC recommends that you pay your PAYE late payment penalty 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.
To pay by post please:
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.
If you are sending a payment to HMRC and do not have a pre-addressed HMRC envelope please send your payment with your payslip to:
HM Revenue & Customs
Bradford
BD98 1YY
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 do not send a covering letter HMRC will not recognise that the cheque is postdated and will present it straight away.
You can pay your PAYE late payment penalty electronically from a bank account outside the UK.
You will need to give your bank or building society HMRC's bank account details.
You should check with your bank or building society to see how long it takes to transfer a payment.
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.
If paying electronically do not use the bank details from the front of a payslip, use the details provided below, which are also provided in the Paying HMRC advice that accompanies HMRC demands.
The account name you should use is 'HMRC Shipley'.
These account details are only for payment of PAYE late payment penalties, and should not be used to make monthly or quarterly PAYE payments.
| Currency | International Bank Account Number (IBAN) | SWIFT Bank Identifier Code (BIC) |
|---|---|---|
| Sterling and foreign currencies (including euro) | GB05CITI08321012001020 | 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
Citgroup Centre
Canada Square
Canary Wharf
London
E14 5LB
When making your PAYE late payment penalty payments you'll need to provide your penalty reference number. You'll find this printed in the format XA123456789012 (this reference is only an example and should not be used to make a payment) on the late payment penalty notice HMRC send you.
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.
Note: Please do not use your Accounts Office reference to make your payment, as the penalty payment will not be identified and you will continue to received reminders even though you have paid.
Employers such as government departments and health authorities who have an account with the Government Banking Service (GBS) can make PAYE late penalty 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 your PAYE late payment penalty payments you'll need to provide your penalty reference number. You'll find this printed in the format XA123456789012 (this reference is only an example and should not be used to make a payment) on the late payment penalty notice HMRC send you. 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.
Note: Please do not use your Accounts Office reference to make your payment, as the penalty payment will not be identified and you will continue to received reminders even though you have paid.
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 PAYE late payment penalty electronically you will not need a payslip, unless paying at a bank or Post Office. HMRC recommends that you make your PAYE late payment penalty 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 use the contact details described in the 'Paying PAYE late payment penalties by post' section of this guide.
Paying PAYE late payment penalty by post
Find out more about late payment penalties
More about PAYE/National Insurance payments and deadlines
Find out about appealing against a penalty
