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  • PAYE Settlement Agreement payments

How to make PAYE Settlement Agreement payments

This guide offers a reminder of PAYE Settlement Agreement (PSA) payment deadlines and explains all of the available payment options.

HM Revenue & Customs (HMRC) recommends that you make all of your PSA payments electronically. Paying electronically:

  • is safe and secure
  • gives you better control over your money
  • provides certainty about when your payment will reach them
  • 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 up to three extra days in which to pay

On this page:

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. They 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. HMRC apologise for any inconvenience this may have caused you.

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PAYE Settlement Agreement payment deadlines

PAYE Settlement Agreement electronic payment deadline

Your cleared payment must reach HMRC's bank account no later than 22 October. Where 22 October falls on a weekend or bank holiday, you must ensure that your payment arrives no later than the last bank working day before 22 October. Bank working days are Monday to Friday excluding bank holidays.

PAYE Settlement Agreement postal payment deadlines

Your cheque payment must reach HMRC no later than 19 October. Where 19 October falls on a weekend or bank holiday, you must ensure that your payment arrives no later than the last bank working day before the 19 October.

If you pay late, interest will be charged.

More about PAYE/National Insurance contributions payment deadlines and interest charges

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PAYE Settlement Agreement payments by Direct Debit

If you're registered for PAYE Online for employers you can make your PSA 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 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 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

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 that 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 'Other liability (Payment reference beginning with 'X')' from the list of taxes on the 'Set up Direct Debit payment' screen.
  • Enter your PSA reference number. This starts with the letter 'X' - for example XA012345678912 - and is on the payslip HMRC sent you.
  • After completing the PSA reference number, enter the total due to HMRC and the required payment date.

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 online 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.

More about PAYE/National Insurance contributions payment deadlines and interest charges

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PAYE Settlement Agreement payments 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 PSA 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 you will need to initiate your payment earlier.

Providing HMRC bank account details

You'll need to provide your bank or building society with HMRC's bank account details. 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
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. They 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. HMRC apologise for any inconvenience this may have caused you.

Your PSA reference number

When making a PSA payment you'll need to provide your 14-character reference number. This starts with the letter 'X' - for example XA012345678912 - and is on the payslip HMRC sent 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.

More about PAYE/National Insurance contributions payment deadlines and interest charges

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PAYE Settlement Agreement payments 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 PSA over the Internet using the BillPay service provided by Alliance & Leicester Commercial Bank.

If you wish to pay by credit card a non-refundable transaction fee of 1.25 per cent will be added to the charge. Any charge of less than £00.01p will be rounded up to a penny.

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.
  • 14-character reference number. This starts with the letter 'X' - for example XA012345678912 - and is on the payslip we have sent you.

Further information on making a debit card payment (opens new window)

Use the BillPay service (opens new window)

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.

More about PAYE/National Insurance contributions payment deadlines and interest charges

Find out about mandatory electronic payments for large employers

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PAYE Settlement Agreement payments 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. 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
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. They 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. HMRC apologise for any inconvenience this may have caused you.

Your PSA reference number

When making a PSA payment you'll need to provide your 14-character reference number. This starts with the letter 'X' - for example XA012345678912 - and is on the payslip HMRC has sent 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.

Multiple or composite payments

If you are a 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.

Shipley Accounts Office email contact details

Email the Shipley Accounts Office

More about PAYE/National Insurance contributions payment deadlines and interest charges

Find out about mandatory electronic payments for large employers

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PAYE Settlement Agreement payments by Bank Giro

If your bank or building society offers the Bank Giro service you can make a PSA payment 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 PSA payslip to your own bank 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 PSA payslip reference number

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

Find out about mandatory electronic payments for large employers

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PAYE Settlement Agreement payments at the Post Office

You can make a PSA 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 PSA 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

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PAYE Settlement Agreement payments by post

HMRC recommends that you make 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 PSA payslip reference
  • detach the payslip and send it with your cheque to the HMRC Accounts Office in Shipley using the pre-addressed envelope HMRC sent you or using 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

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 Shipley - postal address

HM Revenue & Customs
Accounts Office
Bradford
BD98 1YY

More about PAYE/National Insurance contributions payment deadlines and interest charges

Postdated cheques

HMRC will only accept a postdated cheque in the following circumstances:

  • before your PSA payment is due - where the cheque is for the full amount and they receive it by the due date and it's dated on or before the due date
  • after your PSA payment is due - where you have a prior arrangement with your local HMRC office to settle your liability with postdated cheques

Because of the highly automated operations at HMRC's Banking Office in Shipley, they 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.

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PAYE Settlement Agreement payments from an overseas bank account

You can pay your PSA 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. You should check with your bank or building society to see how long it takes to transfer a payment.

Payments to HMRC Accounts Office Shipley from abroad

The account details 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.

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
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.

Providing your PSA reference number

When making a PSA payment you will need to provide your 14-character reference number. This starts with the letter 'X' - for example XA012345678912 - and is on the payslip HMRC has sent 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.

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PAYE Settlement Agreement payments using Paymaster

Employers such as government departments and health authorities who have an account with the Office of the Paymaster General can make PSA 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) they will receive payment on the same day.

Providing your PSA reference number

When making a PSA payment you will need to provide your 14-character reference number. This starts with the letter 'X' - for example XA012345678912 - and is on the payslip HMRC has sent 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.

More about PAYE/National Insurance contributions payment deadlines and interest charges

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PAYE Settlement Agreement 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.

Postal address for correspondence

HM Revenue & Customs
Accounts Office
Bradford
BD98 1YY

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What to do if you don't have a payslip

If you pay your PSA electronically you will not need a payslip. HMRC recommends that you make your PSA 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 PSA reference number
  • the period you are paying
  • the amount of PSA you are paying

You should use the contact details described in the 'Paying PSA by post' section of this guide.

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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.

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More useful links

Guidance if you have a problem making a payment to HMRC

How to make PAYE payments

How to pay Class 1A National Insurance

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