How to pay the HMRC

Confused about how to make your payments to the HMRC? Don’t worry, with all the stress of organising and subsequently filing your tax return many people get lost when it comes to this final hurdle. We will walk you through the different payment methods available when making your tax payment to the HMRC.

After you complete your self-assessment return, you will see a summary of your tax calculation and how much you need to pay. There are two deadlines to pay by – 31st of January for your first payment from the previous year, and the other in 31st of July for your second payment

There are 5 main ways that you can make your payment. These include:

1. Direct Debit

2. Cheque

3. Budget Payment Plan

4. Bank Transfer

5. Tax Code

Below is a summary of the methods with links to aid you in the process.

Direct Debit

By setting up a Direct Debit with HMRC, you’re guaranteed to have your payments meeting the deadlines, because everything goes through automatically.
To arrange your direct debit click the following link to the HMRC’s website and follow the steps: Set up your Direct Debit

Cheque

You can still pay your tax via cheque through the post. Please keep in mind to send your cheque off to the HMRC in reasonable time. This will help omit any chance of said cheque arriving after the deadline and subsequently lowering the chance of you facing a penalty for circumstances out of your control. You should also retain your proof of sending incase your mail is to be lost in transit.

If you do not have have a paying in slip you can print one here.

For more information visit the government website here: Paying your tax bill by cheque

Budget PAyment Plan

You can decide how much to pay each month/week and is set up using an online HMRC account. Payments are then pre-planned and compulsory.
This is recommended to those who cannot afford to pay their tax bill by due date, and offers a solution for manageable repayments. If you are in this position we recommend you contact the HMRC for further clarity on your options.
You can read more about this here: Pay your tax in instalments

Bank Transfer

You can make a transfer direct from your bank account. Please keep in mind that you cannot pay via a personal credit card. Payment must be made via debit card or corporate debit/credit card.
To find out where to transfer your tax bill check your self assessment online portal, if you struggle to find the details contact the HMRC.

For more on paying tax via bank transfer: Pay by Bank Transfer:

Tax Code

To pay by tax code you’ll need to meet the conditions, which you can check on the HMRC website. It’s automatically done (if approved) and the tax you owe will be taken salary in equal instalments up until the following tax year to spread the costs.

Still Struggling?

If you still need help the HMRC is always at hand to help you with any queries that you may have. Alternatively our team of chartered accountants are more than happy to help you through any of your problems. Contact us for help with any and all of your tax needs.