Payment of tax charges on the Accounting for Tax (AFT) return

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When is the payment of tax on the Accounting for Tax (AFT) return due?

Tax is payable without assessment and is due 45 days after the end of the quarter and on the same day as the Accounting for Tax return is due.

You should allow enough time for payment to reach HMRC by the due date and we suggest you allow at least 3 working days for this.

What do I need to make a payment?

Wherever possible, it is advisable to include a charge reference number when making payment of any tax due. This will ensure the payment is correctly matched to the Accounting for Tax (AFT) return and that reminders are not issued for payment unnecessarily.

What is the charge reference?

The charge reference is the unique reference you’re given by HMRC when you successfully submit an Accounting for Tax (AFT) return. It is made up of the three letters, beginning with X, followed by 11 numbers.

How do I get a charge reference?

When an Accounting for Tax (AFT) return is submitted successfully online the submitter will receive a success message that includes a charge reference number, so you can make your payment immediately. After 24 hours, the AFT return and the charge reference number will also be available to view online

When an AFT return is submitted on paper and has been successfully processed, HMRC will acknowledge receipt and provide the Scheme Administrator with a charge reference number and payslip. These will not be sent to a practitioner unless we are specifically asked to do so by the Scheme Administrator when the paper form is submitted.

Payment can then be made using the charge reference number by means of Direct Payment and Bill Pay (see ‘How do I make a payment’). This will be the quickest and most efficient approach to adopt when making the return and paying the tax. Alternatively a pay slip can be requested from HMRC if another method of payment is required, see Registered Pension Schemes - useful contact
numbers.

What is the difference between a charge reference and a payment reference?

There is no difference, although the charge reference is sometimes referred to as a payment reference.

How do I make the payment to HMRC?

There are a number of options available:

  • Direct Payment

Use the Internet, telephone, BACS Direct Credit or CHAPS to make payment. You should provide your bank or building society with the following information:

  • payment amount
  • sort code 10-50-41
  • account number 23456000
  • your charge reference

BillPay

You can pay by Debit Card over the Internet. Visit BillPay and follow the guidance.

At your Bank

If your bank offers this service, take the payslip and payment to your bank branch. Any cheque must be drawn on your bank and made payable to ‘HM REVENUE & CUSTOMS ONLY’. Other banks may refuse to accept payment.

At a Post office

Take the payslip with your payment to any Post Office. If paying by cheque, make your cheque payable to ‘Post Office Ltd’. The Post Office also accept payment by debit card.

If you need a payslip, you should contact Audit and Pension Scheme Services on 0115 974 1600.

Can a Practitioner pay the tax on behalf of the Scheme Administrator?

Yes, anyone can pay the Accounting for Tax charge on behalf of the Scheme Administrator.

What happens if the payment is made late?

Interest is charged on any tax paid late. Please see interest rates on late payments.

What reminders will be sent if the tax due on the Accounting for Tax (AFT) return is not paid?

Where there is no payment and an Accounting for Tax (AFT) return has been submitted, a late payment reminder will be sent. This will be issued 7 days after the payment due date. If the AFT return was submitted late, the reminder will be issued 7 days after the submission.

The reminder will be issued to the Scheme Administrator, not to the practitioner and will quote the AFT charge reference and the amount due. The amount due will also include any interest that has accrued to date.

If non payment continues, HMRC will raise an assessment in order to collect any tax and interest due.

When working out the amount of tax due and making payment should I round the tax due down to full pounds?

Yes, when filing your Accounting for Tax (AFT) return online, you should round down any tax due to exact pounds. If you try to include pence, the system will not recognise any decimal place. For example if you try to declare tax due of £908.65, you will be shown in the charge summary as having declared tax due of £90,865

When making payment, you only need to pay the exact sum shown in the charge summary when you complete the return. If your payment does not match the amount due and you don’t quote the charge reference, then it is possible that there will be a delay in matching your payment with your AFT return.

What are the benefits of making payments electronically?

Making payment electronically is not only quicker, but also more secure and efficient.

Do I need to use Pension Schemes Online to make electronic payments?

No, if you pay electronically, this is not done on Pension Schemes Online, so you don’t even need to be registered to use the online service to make electronic payments.

Payments can also be made electronically where you have submitted a paper Accounting for Tax return form.

How do I pay by cheque?

If you want to pay by cheque, you should take a payslip with your cheque to either your bank or a Post Office. If you are unable to use any other method, cheques should be sent to the following address with an HMRC payslip and quoting the charge reference

HMRC Accounts Office
Shipley
West Yorkshire
BD98 8AA

Who should I contact if I have any questions about a payment?

If you have any questions about a payment that you have made, you should contact the HMRC Accounts Office, Shipley on 01274 530750.

Where can I find further information in the Registered Pension Schemes Manual?

Further information about payments, can be found in the Scheme Administrator pages of RPSM at RPSM12301330.