How to Pay Your PAYE Bill to HMRC

Wondering how to pay your PAYE bill to HMRC?

Here’s our recommended payment methods for PAYE:

Direct debit: Companies can set up a direct debit so that the PAYE liability is taken automatically by HMRC

You can set up the direct debit using your PAYE online account. Please note the following points:

• • You only need to set up your direct debit once
  • You must set the direct debit up at least 4 working days before your payment due date. Should you not leave sufficient time HMRC may not have successfully set up your direct debit and the payment may not be taken on time
  • Should you pay quarterly, HMRC will take the total of the 3 monthly returns and collect the total payment each quarter
  • HMRC will take your payment shortly after the 22nd of the month or 4 working days after your payroll submission has been completed
  • You will be notified of the date and amount no later than 3 working days before the payment is collected
  • PAYE payments will show on your bank statement as ‘HMRC SDSS’

Bank transfer: Companies can make payments directly to HMRC from the business bank account using a bank transfer

The details to make this payment are as follows:

Account name – HMRC Cumbernauld
Account number – 12001039
Sort code – 08 32 10
Reference – Use your 13 character accounts office reference number as the payment reference. You can find this on:

• • Your HMRC online account
  • The letter you received from HMRC when you first registered as an employer
  • From your payroll advisor

Online – by debit or credit card: Companies can make payments to HMRC by logging in to their Government Gateway account and using a business debit or credit card

Use this link to pay online.

There are a few key points to note:

• • There’s a fee if you pay by corporate credit card or corporate debit card
  • There’s no fee if you pay by personal debit card
  • You cannot pay with a personal credit card
  • HM Revenue and Customs (HMRC) will accept your payment on the date you make it (even on bank holidays and weekends) – not the date it reaches HMRC’s account.

Make sure to use your reference (see bank transfer section above) when making the payment so that HMRC can allocate it to your account!

References
When allocating your payment to a specific month (i.e for early or late payments), you can use an additional 4 numbers on the end of your accounts office reference. These numbers indicate the tax year and tax month you are intending to pay towards. You can find details of these reference numbers here.

Finally, it is important to note that the availability of these payment methods may vary, and HMRC may update its processes over time. Additionally, all businesses should be aware of the specific deadlines for their PAYE payments to avoid penalties and late payment interest.

If you have any questions regarding your PAYE liability or making the payment please feel free to contact us!