How to pay PAYE/Class 1 National Insurance
This guide offers a reminder of PAYE and Class 1 National Insurance contributions (NICs) payment deadlines - including Construction Industry Scheme and Student Loan deductions - and explains all of the available payment options.
HM Revenue & Customs (HMRC) recommends that you make all of your PAYE payments electronically. Paying electronically:
- is safe and secure
- gives you better control over your money
- provides certainty about when your payment will reach HMRC
- avoids postal delays
- lets you pay at a time convenient to you if you use Internet or telephone banking
On this page:
- Update: changes to HMRC bank accounts from 6 April 2009
- PAYE/Class 1 National Insurance contributions payment deadlines
- Paying by Direct Debit
- Paying by Internet, telephone banking or BACS Direct Credit
- Paying by debit or credit card over the Internet: BillPay
- Paying by CHAPS transfer
- Paying by Bank Giro
- Paying at the Post Office
- Paying by post
- Paying from an overseas bank account
- Paying using Paymaster
- Notifying HMRC if no payment is due
- Correspondence or receipt requests
- Cancelling your payslip booklet if you no longer need one
- What to do if you don't have a payslip
- Advance funding for PAYE payments
- Information on the Faster Payment service
- More useful links
Update: changes to HMRC bank accounts from 6 April 2009
HMRC bank account details changed from 6 April 2009. If you make payments by Internet, telephone banking or BACS Direct Credit, by CHAPS or from an overseas bank account the new account details are included below. Please note these for future reference.
HMRC is now using two banks - Citi for Internet, telephone banking or BACS Direct Credit and CHAPS payments and Royal Bank of Scotland Group for Bank Giro credits.
If you experience problems using the new account details
HMRC is aware that some customers are experiencing problems making payments from their banks to the new HMRC bank accounts. We are working to resolve this with the banks involved as quickly as possible. If this affects you, you can continue to use the old HMRC account details to make your payments. We apologise for any inconvenience this may have caused you.
PAYE/Class 1 National Insurance contributions payment deadlines
PAYE/Class 1 National Insurance contributions electronic payment deadline
Your cleared payment must reach HMRC's bank account no later than the
22nd of the month following the end of the month or quarter to which
it relates. Employers, who pay their quarterly payments electronically,
have until:
- 22 July to pay their quarter ended 5 July
- 22 October to pay their quarter ended 5 October
- 22 January to pay their quarter ended 5 January
- 22 April to pay their quarter ended 5 April
Where the 22nd falls on a weekend or bank holiday, you must ensure that your payment arrives no later than the last bank working day before the 22nd. Bank working days are Monday to Friday excluding bank holidays. If your payment is late you will be charged interest.
If HMRC has notified you in the previous autumn that you are a large employer (250 or more employees) you must pay electronically.
More about mandatory electronic payment surcharges
PAYE/Class 1 National Insurance contributions postal payment deadlines
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 month or quarter to which it relates. Employers, who pay their quarterly payments by post, have until:
- 19 July to pay their quarter ended 5 July
- 19 October to pay their quarter ended 5 October
- 19 January to pay their quarter ended 5 January
- 19 April to pay their quarter ended 5 April
Where the 19th falls on a weekend or bank holiday, you must ensure that your payment arrives no later than the last bank working day before the 19th. Bank working days are Monday to Friday excluding bank holidays.
Quarterly payment option for small employers
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 you pay late, interest may be charged and a penalty for late payment may be charged.
More about PAYE/National Insurance contributions payment deadlines and interest charges
Paying PAYE/NICs by Direct Debit
If you're registered for PAYE Online for employers you can pay your monthly or quarterly PAYE/NICs payments by Direct Debit. 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 recommends that you pay by Direct Debit because:
- it's safe and secure and available 24 hours a day
- it puts you in control, making it less likely you'll miss a payment deadline
- Direct Debit provides certainty about when your payment will reach HMRC
- HMRC validates your payment reference so payment reaches your account without any delay
- unlike with any other payment method, you are protected by the Direct Debit Guarantee
- it avoids the need to write cheques - and saves postage if you normally pay by post
Find out about the Direct Debit Guarantee (PDF 49K)
If you aren't yet registered for PAYE Online for employers
In order to pay by Direct Debit you need to be registered with PAYE Online for employers. To find out how to register - and about important employer deadlines for sending PAYE forms online - read our guides below.
Once registered you can set up and start using Direct Debit payments right away - you don't have to wait for the Activation Pin which is needed to use the PAYE for employers online service.
How to register for PAYE Online
Employer deadlines for filing PAYE online
Setting up the initial Direct Debit facility
The person setting up the Direct Debit must be able to authorise Direct Debits from the bank/building society account on their own.
They should:
- log in to PAYE for employers
- select 'Direct Debit payment' from the main menu
- follow the on-screen links to complete a Direct Debit Instruction (DDI)
Once the DDI is set-up you can use this to set up your Direct Debit payments.
Setting up payments - how much time to allow
When setting up your first Direct Debit payment you need to complete the online DDI at least five bank working days before the date you wish to make your payment.
For subsequent payments you need to allow at least three bank
working days.
Bank working days are Monday to Friday excluding bank holidays. If you
haven't allowed enough time then you'll have to pay by another electronic
payment method described elsewhere in this guide.
How to set up a Direct Debit payment
To set up a Direct Debit payment, follow the steps below.
- Select Pay As You Earn (PAYE) from the list of taxes on the Set up Direct Debit payment screen.
- Enter your Accounts Office reference number in the Payment Reference field (Reference in the format 123PA00012345). If the payment isn't for the current month or quarter enter the year and month (as described below) in the optional Year end and month field.
- To pay an earlier month or quarter, for example, to make a payment
for month 03 in August of 2009-10
you need to tell us the year and month number is 1003.
Note: when the month number is a single digit add a zero in front (month 3 is shown as 03). - To make a payment for a previous year, for example 2007-08,
you need to tell us the year and month number is 0813.
Note: always show the month number as 13. - Enter the Payment Amount and the date you want us to collect payment.
You'll be asked to check the payments details entered and to re-enter your User ID and password. Then you'll be presented with an Advance Notice confirmation showing how much HMRC will collect and on which date. You can save or print this.
Please note any Direct Debit payment you create will not be visible in your HMRC online account area for up to 36 hours.
Your bank statement
Your Direct Debit payment will appear on your bank statement with the description 'HMRC NDDS'.
Changing or cancelling a payment
You can amend or cancel an online Direct Debit payment up to three bank working days before the payment date.
Paying PAYE by Internet, telephone banking or BACS Direct Credit
You can use your bank or building society services to pay by Internet or telephone banking or by BACS Direct Credit (available to businesses that are authorised by their bank to submit files direct to BACS).
To make a payment you will need the account details given below and your Accounts Office reference number.
It normally takes three bank working days for payment to reach HMRC. Bank working days are Monday to Friday excluding bank holidays. Some banks 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
To pay your PAYE by Internet, telephone banking or BACS Direct Credit you will need HMRC’s bank account details. Please refer to your payslip booklet or the letter sent in place of a booklet to check which HMRC Accounts Office is relevant for you. If your payment is made with 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.
| Accounts Office | Sort code | Account number | Account name |
|---|---|---|---|
| Cumbernauld | 08 32 10 | 12001039 | HMRC Cumbernauld |
| Shipley | 08 32 10 | 12001020 | HMRC Shipley |
Bank account changes from 6 April 2009
The account details above were updated on 6 April 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 aware that some customers are experiencing problems making payments from their banks to the new HMRC bank accounts. We are working to resolve this with the banks involved as quickly as possible. If this affects you, you can continue to use the old HMRC account details to make your payments. We apologise for any inconvenience this may have caused you.
Your Accounts Office reference number for current month or quarter payments
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 on the front of the payslip 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 with the HMRC PAYE reference checker
Your reference number for a future month or quarter payment
If you wish to pay a future month or quarter your reference must show the year and month that the payment relates to.
For example, to pay month 03 of the year 2009-10 before 6 June you need to do the following:
- add 1003 to your Accounts Office reference number to give 123PA000123451003
- use this 17-character reference number to make a combined PAYE and NICs payment.
If you do not add 1003 and use your 13-character Accounts Office reference your payment will be automatically allocated to month 02 and not month 03.
Check your HMRC Accounts Office reference using HMRC Reference Checker
Reference for a previous month, quarter or year payment
Your Accounts Office reference needs to show the period (year and the month) to which the payment relates if it is for either of the following:
- a previous deduction year
- your regular monthly or quarterly payment but it is more than two weeks after the payment date
For example, to make a payment for a previous year, eg for the year 2007-08:
- add 0813 to your Accounts Office reference to give 123PA000123450813
- always show the month as 13
- use this 17-character reference number to make a combined PAYE and NICs payment
To make a payment for a previous month or quarter, eg for month 03 in August of 2009-10:
- add 1003 to your Accounts Office reference to give 123PA000123451003
- when the month number is a single digit add a zero in front (thus show month 3 as 03)
- use this 17-character reference number to make a combined PAYE and NICs payment
Check your HMRC Accounts Office reference using HMRC Reference Checker
More about PAYE/National Insurance contributions payment deadlines and interest charges
Paying PAYE by debit or credit card over the Internet: BillPay
If you have a debit or credit card issued by a UK bank, you can pay your Employer's PAYE and Class 1 National Insurance contributions over the Internet using the BillPay service provided by Alliance & Leicester Commercial Bank.
Please note that there will be a transaction charge for payments by credit card.
HMRC does not accept American Express or Diners Club cards.
Information you will need
To make a payment you will need your:
- Debit or credit card details.
- Accounts Office reference number. You'll find this printed in the format 123PA00012345 on the front of the payslip booklet HMRC sends you, or on the letter sent in place of a booklet.
Disclaimer
The BillPay service is an 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)
Paying PAYE 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).
CHAPS payments are more expensive than other payment methods but may be of benefit if you are an employer making very large payments.
Providing HMRC bank account details
You’ll need to provide your bank or building society with HMRC’s bank account details. Please refer to your payslip booklet or the letter sent in place of a booklet to check which Accounts Office is relevant for you. If your payment is made with 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.
| Accounts Office | Sort code | Account number | Account name |
|---|---|---|---|
| Cumbernauld | 08 32 10 | 12001039 | HMRC Cumbernauld |
| Shipley | 08 32 10 | 12001020 | HMRC Shipley |
Bank account changes from 6 April 2009
The account details above were updated on 6 April 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 aware that some customers are experiencing problems making payments from their banks to the new HMRC bank accounts. We are working to resolve this with the banks involved as quickly as possible. If this affects you, you can continue to use the old HMRC account details to make your payments. We apologise for any inconvenience this may have caused you.
Your HMRC Accounts Office reference number
You will need to provide your HMRC Accounts Office reference number. This is printed in the format 123PA00012345 on the front of the payslip booklet HMRC sends you, or on the letter sent in place of a booklet.
It is important that you enter the reference number with no gaps between
the characters, otherwise it could lead to delays in updating your record.
You can check the number using HMRC's online checker tool below.
Check your HMRC Accounts Office reference using HMRC's reference checker
CHAPS payment instruction
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
Multiple or composite payments
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 email your accounts office. HMRC will contact you with further guidance.
HMRC Accounts Office email contact details
Email the HMRC Cumbernauld Accounts Office
Email the HMRC Shipley Accounts Office
More about PAYE/National Insurance contributions payment deadlines and interest charges
Paying PAYE by Bank Giro
If your bank or building society offers the Bank Giro service you can make a payment of PAYE and Class 1 National Insurance contributions at your own bank branch by cheque or cash. HMRC treats any payment made by Bank Giro as electronic.
If paying this way please:
- take your payslip to your own bank branch (other banks may refuse to accept it or may charge you for this service)
- make your cheque payable to 'HM Revenue & Customs only' and write your Accounts Office reference after 'HM Revenue & Customs only'
HMRC is in the process of changing its bank account details and will be amending payslips to reflect these. However, arrangements are in place to continue to receive payments made using the old bank account details and payslips for the time being.
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.
More about PAYE/National Insurance contributions payment deadlines and interest charges
Paying PAYE at the Post Office
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:
- take your payslip with you (otherwise you'll be charged for using this service)
- make cheques payable to 'Post Office Ltd'
HMRC is in the process of changing its bank account details and will be amending payslips to reflect these. However, arrangements are in place to continue to receive payments made using the old bank account details and payslips for the time being.
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.
More about PAYE/National Insurance contributions payment deadlines and interest charges
Paying PAYE by post
HMRC recommends that you make your PAYE and Class 1 National Insurance contributions 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:
- make your cheque payable to 'HM Revenue & Customs only' and write your Accounts Office reference after 'HM Revenue & Customs only'
- detach the payslip for the tax month or quarter you are paying and send it with your cheque to HMRC's Accounts Office using the pre-addressed envelope sent to you or the appropriate address below
- do not fold the payslip or cheque and do not fasten them with paper clips or staples or in any other manner
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.
HMRC Accounts Office addresses
| If you pay to Accounts Office Shipley | If you pay to Accounts Office Cumbernauld |
|---|---|
| HM Revenue & Customs Accounts Office Bradford BD98 1YY |
HM Revenue & Customs |
Postdated cheques
HMRC will only accept a postdated cheque in the following circumstances:
- before your tax is due - where the cheque is for the full amount and received and is dated on or before the due date
- after your tax is due - where you have a prior arrangement with your local HMRC office to settle your liability with post dated cheques
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.
More about PAYE/National Insurance contributions payment deadlines and interest charges
Paying PAYE from an overseas bank account
You can pay your PAYE and Class 1 National Insurance contributions electronically from a bank account outside the UK.
Providing HMRC bank account details
You will need to give your bank or building society HMRC's bank account details. Please refer to your payslip 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.
The account details in the tables below were updated on 6 April 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. HMRC has arrangements in place to continue to receive any payments using the old bank account details for the time being.
Payments to HMRC Accounts Office Shipley from abroad
The account name you should use is 'HMRC Shipley'.
| Currency | International Bank Account Number (IBAN) | SWIFT Bank Identifier Code (BIC) |
|---|---|---|
| Sterling and foreign currencies (except euro) | GB05CITI08321012001020 | CITIGB2L |
Payments to HMRC Accounts Office Cumbernauld from abroad
The account name you should use is 'HMRC Cumbernauld'.
| Currency | International Bank Account Number (IBAN) | SWIFT Bank Identifier Code (BIC) |
|---|---|---|
| Sterling and foreign currencies (except euro) | GB74CITI08321012001039 | CITIGB2L |
Payments to HMRC in euro from abroad
All payments from abroad made in euro are processed by HMRC’s Accounts Office in Shipley. The account name you should use is 'HMRC Shipley'.
| Currency | International Bank Account Number (IBAN) | SWIFT Bank Identifier Code (BIC) |
|---|---|---|
| Euro | GB78CITI18500812000814 | CITIGB2L |
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 HMRC Accounts Office reference number
You will also need to provide your HMRC Accounts Office reference number.
You'll find this printed in the format 123PA00012345 on the front of the payslip 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.
Your reference number for a future month or quarter payment
If you wish to pay a future month or quarter your reference must show
the year and month that the payment relates to.
For example, to pay month 03 of the year 2009-10
before 6 June you need to do the following:
- add 1003 to your Accounts Office reference number to give 123PA000123451003
- use this 17-character reference number to make a combined PAYE and NICs payment
If you do not add 1003 and use your 13-character Accounts Office reference your payment will be automatically allocated to month 02 and not month 03.
Check your HMRC Accounts Office reference using HMRC Reference Checker
Reference for a previous month or year payment
Your Accounts Office reference needs to show the period (year and the month) to which the payment relates if it is for either of the following:
- a previous deduction year
- your regular monthly or quarterly payment but it is more than two weeks after the payment date
For example, to make a payment for a previous year, eg for the year 2007-08:
- add 0813 to your Accounts Office reference to give 123PA000123450813
- always show the month as 13
- use this 17-character reference number to make a combined PAYE and National Insurance contributions payment
To make a payment for a previous month or quarter, eg for month 03 in August of 2009-10:
- add 1003 to your Accounts Office reference to give 123PA000123451003
- when the month number is a single digit add a zero in front (thus show month 3as 03)
- use this 17-character reference number to make a combined PAYE and National Insurance contributions payment
You can check the number using HMRC's online checker tool below.
Check your PAYE reference with the HMRC PAYE reference checker
More about PAYE/National Insurance contributions payment deadlines and interest charges
Paying PAYE using Paymaster
Employers such as government departments and health authorities who have an account with the Office of the Paymaster General can make PAYE and Class 1 National Insurance contributions payments using Paymaster. The Office of the Paymaster General transfers the payments direct to HMRC's bank account.
Provided you initiate payment within the time specified by the Office of the Paymaster General (usually between 9.00 am and 3.00 pm) HMRC will receive payment on the same day.
Your HMRC Accounts Office reference number
You will need to provide your HMRC Accounts Office reference number. You'll find this printed in the format 123PA00012345 on the front of the payslip 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 with the HMRC PAYE reference checker
Notifying HMRC if no PAYE payment is due
Even if you have no PAYE/National Insurance contributions 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. You can let HMRC know by:
- completing an online form and clicking the send button (see below)
- sending HMRC a signed payslip for the correct month or quarter marked 'NIL due' if you still receive a payslip booklet
- contact HMRC on Tel 0845 366 7816 - you will need to provide your Accounts Office reference number and the details of the month or quarter where no payment is due
If you believe no payments will be due for several future months please contact HMRC on Tel 0845 366 7816.
Notify HMRC online that no PAYE/National Insurance contributions payment is due
PAYE payment 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. HMRC cannot identify any instructions written on payslips as they are processed automatically.
If you wish to tell HMRC about a change (such as 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.
HMRC Accounts Office addresses
| If you pay to Accounts Office Shipley | If you pay to Accounts Office Cumbernauld |
|---|---|
| HM Revenue & Customs Accounts Office Bradford BD98 1YY |
HM Revenue & Customs Accounts Office Bradford BD98 1GG |
Cancelling your payslip booklet if you no longer need one
If you pay at a bank, Post Office counter or by cheque in the post you need a payslip 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 payslip booklets by following the relevant link to your HMRC Accounts Office below.
Stop the issue of a payslip booklet - Cumbernauld
Stop the issue of a payslip booklet - Shipley
What to do if you don't have a payslip
If you pay your PAYE and Class 1 National Insurance contributions electronically you will not need a payslip. HMRC recommends that you make your PAYE and Class 1 National Insurance contributions 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:
- your company name
- your address
- your telephone number
- your Accounts Office reference number
- the month and deduction year you're paying
- the amount of PAYE and Class 1 National Insurance contributions you are paying
You should use the contact details described in the 'Paying PAYE/Class 1 National Insurance by post' section of this guide.
Advance funding for PAYE payments
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:
- PAYE tax and National Insurance contributions
- Construction Industry Scheme (CIS) deductions
- Student Loan deductions
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:
- reduce your subsequent monthly or quarterly payments to make up the balance
- apply to HMRC for funding to cover the balance
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/National Insurance contributions payment is due'.
Funding for tax refunds to employees
Funding for Statutory Payments
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
Guidance if you have a problem making a PAYE payment
Find out mandatory electronic payment surcharges
How to pay Class 1A National Insurance
