How to Pay PAYE and National Insurance to HMRC

Introduction

As an employer, you must pay your PAYE bill to HMRC each month or quarter, covering Income Tax deductions, National Insurance contributions, and other payroll-related amounts. This guide explains when your payment is due, how to pay, and what you need to do to ensure your payment reaches HMRC on time.

Payment deadlines

Your PAYE payment deadline depends on how you pay and how often:

Monthly payments – you must pay by the 22nd of the next tax month. For example, for the tax month ending 5 May, you must pay by 22 May.

Quarterly payments – you must pay by the 22nd after the end of the quarter. For example, for the quarter running from 6 April to 5 July, you must pay by 22 July.

Payments by cheque – if you pay by cheque through the post, it must reach HMRC by the 19th of the month, not the 22nd.

Late payments may result in interest charges and penalties.

What your PAYE bill includes

Your PAYE bill covers several types of deduction and contribution. It may include:

• Employee Income Tax deductions
• Class 1 and 1B National Insurance contributions
• Class 1A National Insurance on termination awards and sporting testimonials
• Student Loan repayments
• Construction Industry Scheme (CIS) deductions
• Apprenticeship Levy payments (if you or connected employers have an annual pay bill over £3 million)

The total amount you owe will be based on what you've reported in your payroll returns.

Your payment reference number

When you pay HMRC, you must use your 13-character accounts office reference number as the payment reference. You can find this:

• In your HMRC online account if you've enrolled for PAYE online
• On the letter HMRC sent you when you registered as an employer (or sent to your accountant or tax adviser if they registered on your behalf)

Important: Do not put any spaces between the reference number digits when paying your bill. Using the wrong reference number may delay your payment.

If you're making an early payment (before the 6th of the tax month or quarter) or a late payment (on or after the 5th of the tax month after the payment was due), you need to add four extra numbers to your 13-character reference.

Paying by Direct Debit

Direct Debit is the simplest way to pay your PAYE bill. Once set up through your HMRC online account, HMRC will automatically collect the correct amount based on your Full Payment Submission (FPS) – the return you submit each time you run payroll.

You only need to set up the Direct Debit once. Set it up at least 4 working days before your payment due date. If you haven't used your Direct Debit for 2 years or more, check with your bank that it's still active.

When the payment is taken

HMRC will usually take the payment either:

• Shortly after the 22nd of the month
• 4 working days after you file your return (if you file it after the 19th of the month)

HMRC will tell you the date and amount no later than 3 working days before collection. Payments will appear on your bank statement as 'HMRC SDDS'.

If you pay quarterly, you should continue to submit monthly returns – HMRC will collect the total payment every 3 months.

When you cannot use Direct Debit

You must pay in a different way if you are:

• Making payments of £20 million or more
• Using an overseas bank account
• Exempt from submitting PAYE returns online
• An insolvency practitioner
• A CIS contractor who is not enrolled for PAYE online

You also cannot set up a Direct Debit for PAYE penalties or PAYE Settlement Agreements.

Paying online

You can pay your PAYE bill online by:

• Approving a payment through your online banking
• Debit or corporate credit card

Paying by online bank account

When you approve a payment using your online banking details, you can select a date to pay as long as it's before your payment is due. The payment is usually instant but can take up to 2 hours to show in your bank account. Check your account to make sure the payment has gone out on the correct day.

Paying by card

You can pay by personal debit card (no fee) or corporate credit or debit card (non-refundable fee applies). You cannot pay by personal credit card.

HMRC will accept your payment on the date you make it, even on bank holidays and weekends, not the date it reaches their account.

If you cannot pay your full PAYE bill by card, use another payment method such as a bank transfer.

Paying by bank transfer

You can make a bank transfer using Faster Payments, CHAPS or Bacs from your online bank account or by phoning your bank.

From a UK bank account, pay into this HMRC account:

• Sort code: 08 32 10
• Account number: 12001039
• Account name: HMRC Cumbernauld

From an overseas bank account, use CHAPS and pay into:

• Account number (IBAN): GB62 BARC 2011 4770 2976 90
• Business Identifier Code (BIC): BARCGB22
• Account name: HMRC Cumbernauld

Overseas payments should be in sterling. Your bank may charge you if you use any other currency.

How long transfers take

• Faster Payments (online or telephone banking) usually reach HMRC on the same or next day, including weekends and bank holidays
• CHAPS payments usually reach HMRC the same working day if you pay within your bank's processing times
• Bacs payments usually take 3 working days

Check your bank's transaction limits and processing times before making a payment.

If you want to make a single CHAPS payment covering multiple PAYE schemes, you need to send an online CHAPS enquiry form to HMRC.

Paying by cheque

You can send a cheque by post to HMRC. Remember, cheques must reach HMRC by the 19th of the month, not the 22nd.

Payment booklets

HMRC no longer sends printed payment booklets. If you have an old payment booklet, you can still use it to pay tax owed from the tax year 6 April 2023 to 5 April 2024 at your bank or building society. For the current tax year (2025/26), you must use another payment method.

Sources

• Pay employers' PAYE

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.