This guide explains all of the available payment options for PAYE (Pay As You Earn) and Class 1 National Insurance contributions (NICs) - including Construction Industry Scheme (CIS) and Student Loan deductions – and offers a reminder of the payment deadlines.
If you are looking for guidance on how to pay Class 1A NICs, PAYE Settlement Agreements or PAYE Late Payment Penalties please see the section 'More useful links' at the end of this page.
HM Revenue & Customs (HMRC) recommends that you make all of your PAYE payments electronically. HMRC counts all of the payment methods below as electronic apart from payment by post. Paying electronically:
You may have to pay penalties if you do not pay your PAYE, NICs, CIS or Student Loan deductions 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 the 22nd of the month following the end of the tax month or quarter to which it relates.
If you are a large employer (250 or more employees) you must pay electronically.
If you are not required to pay electronically please ensure your cheque reaches HMRC no later than the 19th of the month following the end of the tax month or quarter to which it relates.
If you estimate that your total payment will be on average less that £1,500 per month, you can choose to make quarterly rather than monthly payments.
If all payments, on which tax and NICs are due, are paid to your employee(s) in a single tax month you can choose to become an annual payer. This means that you pay HMRC once a year on the due date and you don’t have to complete the monthly nil payment notification.
Find out more about what to do if you think you should pay quarterly or annually
You may have to pay late payment penalties if you don't pay your PAYE, NICs, CIS or Student Loan deductions on time and in full.
The late payment penalties apply to all employers.
These penalties replace the Mandatory Electronic Surcharge which applied to employers with 250 or more employees.
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)
Find our more about late payment penalties
You can check your PAYE tax position for 2010-11 and later years on your ‘At a glance’ page in the PAYE Online for Employers service. You can see details of what you have paid and what you owe or are owed.
If you're already signed up for Business Tax Dashboard you can also view your liabilities and payments there.
Read more about HMRC’s Business Tax Dashboard
More about PAYE/National Insurance contributions payment deadlines and interest charges
When making your payment to HMRC it is important that you ensure you are using the correct reference number. Using the right reference number ensures that your payment reaches your account promptly and avoids unnecessary reminders being issued.
When making your current monthly or quarterly payments you'll need to provide your Accounts Office reference number. You'll find this printed in the format 123PA00012345 (this reference is only an example and should not be used to make a payment) on the front of the payment booklet HMRC sends you or on the letter sent in place of a booklet.
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 check the number using HMRC's online checker tool below.
Check your PAYE reference for current month or quarter payments with the HMRC reference checker
If you send your payment to HMRC earlier or later than they expect it you will need to tell them the year and month your payment relates to so that they can correctly allocate it to the period you are paying. You still need to use your 13 character Accounts Office reference but with extra information added. For example if the payment you are making is:
When paying by Bacs Direct Credit, internet/telephone banking, Faster Payments or CHAPS you need to add an extra four digits to the end of your 13 character Accounts Office reference. If you have any difficulty with including an extended reference number on your payment request you should speak to your bank or building society.
When paying by Direct Debit or BillPay you need to enter your 13 character Accounts Office reference in the reference box and then enter/select the correct year and month in the separate boxes provided.
The table below shows you the different months and quarters for the year 2012-13 (period from 6 April 2012 to 5 April 2013) and what information ('tax year ending and PAYE month') you should add.
| Payment for the month or quarter ended | PAYE month or quarter number | 'Tax year ending and PAYE month' you should add |
|---|---|---|
| 5 May | M01 | 1301 |
| 5 Jun | M02 | 1302 |
| 5 Jul | M03/Q1 | 1303 |
| 5 Aug | M04 | 1304 |
| 5 Sep | M05 | 1305 |
| 5 Oct | M06/Q2 | 1306 |
| 5 Nov | M07 | 1307 |
| 5 Dec | M08 | 1308 |
| 5 Jan | M09/Q3 | 1309 |
| 5 Feb | M10 | 1310 |
| 5 Mar | M11 | 1311 |
| 5 Apr | M12/Q4 | 1312 |
The examples below show how you should add the 'tax year ending and PAYE month' to your Accounts Office reference.
For example, to pay PAYE month 06 (quarter 2) of the year 2012-13 before 6 October you need to do the following:
If you do not add 1306 and use your 13-character Accounts Office reference your payment will be automatically allocated to month 05 and not month 06.
For example, to make a payment for PAYE 09 (quarter 3), which you should have paid in January 2012-13, in March of 2012-13:
Note: You may still be liable to late payment penalties.
For example, to make a payment for a previous year, for the year 2011-12:
If you add the wrong 'tax year ending and PAYE month' your payment will be incorrectly allocated and you may receive a reminder.
Check your HMRC Accounts Office reference number for a previous year payment
More about PAYE/National Insurance contributions payment deadlines and interest charges
If you're registered for PAYE Online for employers you can set up a Direct Debit for HMRC to collect your monthly or quarterly PAYE/NICs payments (including Construction Industry Scheme and Student Loan). 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 estimates the split of your payment between PAYE and NICs and corrects the allocation later when they process your Employers Annual Return (P35 and P14s).
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 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 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.
To set up a Direct Debit Instruction from the HMRC homepage
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 Employer's PAYE and Class 1 NICs 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 avoid interest charges and penalties on late payments HMRC provides guidance to help you decide when to make your payments.
More about PAYE/National Insurance payments and deadlines
To make a payment you will need your:
Paying previous years
To make a payment for a previous year, for example 2011-12 you need to select:
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
Note: currently the BillPay facility is unable to accept 'Month 13' payments. Please use 'Month 12' instead.
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 reference with the HMRC PAYE 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:
To make a payment you will need the account details given below and your Accounts Office reference number.
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 an 'adhoc' 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 own 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 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.
You can complete and print off a standard format instruction to your bank to make a CHAPS payment to HMRC by following the links below. Please note that some bank branches may require an accompanying letter as an authorisation to pay.
Complete and print out CHAPS payment request for Shipley
Complete and print out CHAPS payment request for Cumbernauld
To pay your PAYE/Class 1 NIC 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 internet or telephone banking, Bacs Direct Credit 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
You will also need to provide your Accounts Office reference number with your payment.
Find out more about your Accounts Office reference number
Remember, if you're late submitting your return or payment, you may be charged a penalty. Interest may also be charged.
More about PAYE/National Insurance payments and deadlines
If you are a very large employer, you may wish to make one payment to cover a number of schemes (called multiple or composite payments). If you think you would like to use this method, please contact the Accounts Office you normally deal with. They will then get back to you with further guidance.
Note: Please do not use these links to ask for advice on anything other than CHAPS payments, as HMRC will not be able to respond.
Contact HMRC's Cumbernauld Accounts Office
Contact HMRC's Shipley Accounts Office
If your bank or building society offers the Bank Giro service you can make a payment of PAYE and Class 1 NICs 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.
To avoid interest charges and penalties on late payments HMRC provides guidance to help you decide when to make your payments.
More about PAYE/National Insurance payments and deadlines
You can make a PAYE and Class 1 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.
To avoid interest charges and penalties on late payments HMRC provides guidance to help you decide when to make your payments.
More about PAYE/National Insurance payments and deadlines
HMRC recommends that you make your PAYE and Class 1 NICs 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.
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 a payslip from your payment booklet, 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.
To avoid interest charges and penalties on late payments HMRC provides guidance to help you decide when to make your payments.
More about PAYE/National Insurance payments and deadlines
You can pay your PAYE and Class 1 NICs electronically from a bank account outside the UK.
You will need to give your bank or building society HMRC's bank account details. Please refer to your payment booklet or the letter sent in place of a booklet to check which Accounts Office is relevant for you. 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'.
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
You will also need to provide your HMRC Accounts Office reference number with your payment.
Find out more about your Accounts Office reference number
Employers such as government departments and health authorities who have an account with the Government Banking Service (GBS) can make PAYE and Class 1 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.
To avoid interest charges and penalties on late payments HMRC provides guidance to help you decide when to make your payments.
More about PAYE/National Insurance payments and deadlines
You will also need to provide your HMRC Accounts Office reference number with your payment.
Find out more about your Accounts Office reference number
Even if you have no PAYE/NICs payment to make you must let HMRC know. It's important to do this before the payment due date to avoid being issued with a payment reminder or penalty warning letters. You can let HMRC know by:
If you believe no payments will be due for several future months please contact HMRC on Tel 0845 366 7816.
If you are also making a CIS nil return for this period you will need to notify HMRC of this separately. You can find out how to do this below.
CIS nil returns, late returns or mistakes
Notify HMRC online that no PAYE/National Insurance contributions payment is due
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 at a bank, Post Office counter or by cheque in the post you need a payment booklet. However you don't need one if you pay HMRC by any other method described in this guide.
You can advise HMRC online to stop issuing further payment booklets by following the relevant link to your HMRC Accounts Office below.
Stop the issue of a payment booklet (Cumbernauld)
Stop the issue of a payment booklet (Shipley)
If you pay your PAYE and Class 1 NICs electronically you will not need a payslip, unless you pay at a bank or Post Office. HMRC recommends that you make your PAYE and Class 1 NICs 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/Class 1 National Insurance by post' section of this guide.
Paying PAYE/Class 1 National Insurance by post
If you need to make a tax refund or provide Statutory Payments (SSP, SMP etc) to one or more of your employees, you can fund this by reducing your monthly or quarterly payments to HMRC by the amount of refund(s)/Statutory Payments. The payments that you can reduce for this purpose are:
If your payment to HMRC for the same period isn't sufficient to cover the tax refund(s), you can do either of the following:
Please note that if, as a result of tax refunds or Statutory Payments, you have no payment to make to HMRC in a given month or quarter you will need to follow the instructions in the earlier section 'Notifying HMRC if no PAYE/NICs payment is due'.
Funding for tax refunds to employees
Funding for Statutory Payments
Guidance if you have a problem making a PAYE payment
How to pay Class 1A National Insurance
How to make PAYE Settlement Agreement payments
