This guide explains the electronic options for making pension scheme payments to HM Revenue & Customs (HMRC) if you're a pension scheme administrator. 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
When your pension scheme's Accounting for Tax Return has been successfully filed online with HMRC you will receive an online receipt and be provided with a payment reference number on screen. When making payment it is essential that you use the reference number provided to ensure that your payment can be allocated promptly to your record.
You should ensure that HMRC's Pension Scheme Services receives your Accounting for Tax Return in sufficient time to issue you with your reference before your payment is due. HMRC recommends that you pay electronically.
If you have a debit or credit card issued by a UK bank, you can make pension scheme payments 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.
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.
Further information on making a debit or credit card payment (opens new window)
Use the BillPay service (Opens new window)
You can use your bank or building society services to pay by:
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 Pension scheme reference number 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 pension scheme 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)
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.
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 make a payment as a pension scheme administrator 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, Faster Payments, 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 |
|---|---|---|---|
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
When making your payment you will need your reference number. This is shown on screen when you file the Accounting for Tax Return for the payment you are making. The reference is in the format XAR12345678912 (this reference is only an example and should not be used to make a payment). It is important that you show the reference with no gaps between the characters, otherwise it could lead to delays in updating your account.
Remember, you may be charged a penalty if your payment is not received by HMRC by the agreed deadline date.
Employers such as government departments and health authorities who have an account with the Government Banking Service (GBS) can make a pension scheme payment using the GBS online 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 payment you will need your payment reference number. This is shown on screen when you file your Accounting for Tax Return for the payment you are making. The reference is in the format XAR12345678912 (this reference is only an example and should not be used to make a payment). It is important that you show the reference with no gaps between the characters, otherwise it could lead to delays in updating your account.
If your bank or building society offers the Bank Giro service you can make a pension scheme payment at your own bank branch by cheque or cash. HMRC treats any payment made by Bank Giro as electronic.
If paying this way:
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.
If you are going to pay using a payslip please only use an official HMRC payslip.
HMRC payslips contain the correct HMRC bank account information for use with cheque payments.
You can make a pension scheme 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:
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 make your 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:
To allow for possible postal delays (for which HMRC is not responsible) please allow three working days for your payment to reach HMRC.
If you are sending a payment to HMRC and do not have an HMRC pre-addressed envelope please send your payment to:
HM Revenue & Customs
Bradford
BD98 1YY
HMRC will only accept a postdated cheque in the following circumstances:
Please note that because of the highly automated system 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 Pension Schemes electronically from a bank account outside of 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.
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 |
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
When making your payment you will need your reference number. This is shown on screen when you file the Accounting for Tax Return for the payment you are making. The reference is in the format XAR12345678912 (this reference is only an example and should not be used to make a payment). It is important that you show the reference with no gaps between the characters otherwise it could lead to delays in updating your account.
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.
Find out what you can do if you have a problem making a payment
