How to Pay Self-Assessment Tax Bill

by Vidit Agarwal NOMISMA - Excellent Small Business Accounting Soft

If you are paying taxes to HMRC online for financial year 2017-18 then you have pay it before due date that is 31st Jan 2019. Any tax payer who wants to avoid penalty then pay your self-assessment tax bill before deadline. In this Article, we have covered how you can pay self-assessment tax bill to HMRC.

Ways to Pay

There are different ways to pay self-assessment tax bill. Every mode of payment will take some time and it all depends upon the selected mode of payment.

Same Day or Next Day

If you want to pay same day or next day to HMRC, you can follow following modes of payment for faster payments –

By Online Transfer or Telephone Banking.
By Debit or Corporate Credit Card Online.
CHAPS (Clearing House Automated Payment System).
By Bank or at your Building Society (HMRC Paying-in slips required for paying tax at Bank or Building Society).

3 Working days

Following modes of payment usually takes 3 working days –

Direct debit
By Cheque
BACS (Direct bank transfer)

5 Working days

The most time taking mode to clear out a transaction is direct debit in case you have not set up your direct debit account with HMRC. The transaction usually takes around 5 days in processing the payment.

How you can pay Your Self-Assessment Tax Bill –

You can pay your self-assessment tax bill to HMRC through following methods –

1. By Direct Debit :-

Set up a Direct Debit through your HMRC online account to make single payments for 31 January. You will need to use your 11 character payment reference number. This is your 10 digit UTR followed by the letter K. Your payment may be delayed if you use the wrong reference number. Now you have to wait for 5 working days to process a Direct Debit.

2. Through Online Bank Account, CHAPS or Bacs :-

You can make a transfer from your bank account by Faster Payments, CHAPS or Bacs. Your bill will tell you which account to pay in to. If you do not have a bill, or you’re not sure, use HMRC Cumbernauld.

Account details to use

Account name	Account number	Sort code
HMRC Cumbernauld	12001039	08 32 10
HMRC Shipley	12001020	08 32 10

If you are using overseas account

Account name	Account number (IBAN)	Bank identifier code (BIC)
HMRC Cumbernauld	GB62BARC20114770297690	BARCGB22
HMRC Shipley	GB03BARC20114783977692	BARCGB22

Pay through Faster Payments (online or telephone banking) usually reach same or next day to HMRC (including weekends and bank holidays). CHAPS payments usually reach HMRC the same working day if you pay within your bank’s processing times and Bacs payments usually take 3 working days.

3. By Debit or Corporate Credit Card Online :-

You can pay through Debit or corporate credit card online. There is a fee if you are paying through Corporate Credit Card and the fee is not refundable. HMRC will accept your payment on same the day on which date you have made the payment.

4. At your Bank or Building Society :-

You can only pay at your bank branch by cash or cheque if you both –

still get paper statements from HMRC
have the paying-in slip HMRC sent you

Make Cheque payable to ‘HM Revenue and Customs only’ followed by your payment reference number. This is your Unique Taxpayer Reference followed by the letter ‘K’. You’ll find it on your paying-in slips. HMRC will accept your payment on same the day on which date you have made the payment.

5. By Cheque through the Post : -

You can send a Cheque by post to HMRC. You don’t need to include a street, city name or PO box with below address. It will usually takes 3 working days to reach HMRC.

HMRC

Direct

BX5 5BD

6. Budget Payment Plan :-

You can setup a Budget Payment Plan for regular payments in advance. You must be up to date with your previous Self-Assessment payments. You can set up your Budget Payment Plan using your HMRC online account. Go to the Direct Debit section and choose the budget payment option when filling in the Direct Debit form.

7. Through your Tax Code :-

You can pay your Self-Assessment bill through your PAYE tax code on following conditions:

you owe less than £3,000 on your tax bill
you already pay tax through PAYE, for example you’re an employee or you get a company pension
You have submitted your paper tax return by 31 October or your online tax return by 30 December.

HMRC will automatically collect what you owe through your tax code if you meet all above 3 conditions, unless you have specifically asked them not to (on your tax return). If you’re not eligible, you will not be able to pay this way.

Read Also: How to submit Self-Assessment Tax Return