This ICAEW Tax Faculty guide summarises the different methods of paying tax over to HMRC. It is not intended to cover other means of paying tax such as coding adjustments. It also touches briefly on what taxpayers can do if they cannot pay.
Links to the relevant sections of the HMRC website are provided. Full information on how to pay all taxes and duties can be found on HMRC's web page Paying HMRC.
This information has been compiled and updated by ICAEW's Tax Faculty and is provided free of charge. The faculty provides a broad range of detailed technical and practical guidance on tax matters. Find out more about the benefits of joining the Tax Faculty.
Taxpayers can set up a direct debit through their HMRC online account to pay the following taxes:
Except for VAT, for which continuous direct debit authority can be set up, they will have to set this up as a single payment, so the process will need repeating each time they want to make a payment. Agents cannot do this for their clients.
|Account name||HMRC Shipley||HMRC Cumbernauld|
|Account number||1200 1020||1200 1039|
|Reference||Please quote the 10-digit UTR followed by the letter K
If you are unsure which account to pay in to, use HMRC Cumbernauld.
If paying from an overseas account the following additional details may be needed:
Payments to HMRC shipley
IBAN: GB03 BARC 201147 8397 7692
BIC: BARC GB22
Payments to HMRC Cumbernauld
IBAN: GB62 BARC 201147 7029 7690
BIC: BARC GB22
The Certificates of Tax Deposit scheme (CTDs) allows taxpayers to deposit money and use it later to pay certain liabilities.
The minimum deposit is £500, but subsequent deposits can be made. The minimum for further deposits is the lower of:
Each time you make a deposit you will be given a new certificate. You can't top up an existing certificate.
For more information about CTDs see, gov.uk/guidance/certificate-of-tax-deposit-scheme
A taxpayer can set up a budget payment plan to make regular payments in advance providing their previous self assessment payments are up to date.
The plan allows the taxpayer to decide how much to pay each week or month (they can stop paying for up to six months) but this has to be set up through their HMRC online account, so agents cannot do this for their clients.,
If the payments made under the plan don’t cover the bill, the balance will have to be paid by the normal payment dates.
Self assessment tax can only be paid at the bank if:
If not then an alternative method of payment will have to be used. It will not be possible to pay self assessment bills at post offices from 15 December 2017.
Taxpayers who have difficulty in paying their tax may be able to get help from HMRC’s Business Payment Support Service (BPSS) which can be used to make arrangements for time to pay.
Despite its name, the BPSS deals with requests from individuals as well as businesses. Nominated partners in business partnerships can negotiate time to pay on behalf of the partnership or individual partners. Where agent authorisation is in place, the BPSS can make payment arrangements with agents on behalf of their clients.
Taxpayers need to contact the BPSS on telephone number 0300 200 3835 well in advance of when the payment is due: the service is not available where the tax has already become due. In those circumstances taxpayers should contact the office from which they have received a demand.
Interest is charged on late payments and the current rate is 2.75% per year.
Penalties are imposed for late payment. HMRC should waive penalties where a time to pay arrangement has been made before the due date.
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