Pay your PAYE to HMRC

Introduction

This guide is written to help small business owners and directors understand what PAYE is, when PAYE is due to be paid and the different ways of paying PAYE to HM Revenue & Customs (HMRC).

What is PAYE?

As an employer you normally have to operate PAYE (Pay As You Earn) as part of your payroll. PAYE is HMRC's system to collect Income Tax and National Insurance from employment.

If you don't employ any staff this article does not apply to you. To read more about deducting PAYE from your employees, take a look at our article taking on your first employee.

Directors of a limited company may be required to pay PAYE on their own salary. Please contact your accountant if you are a company director and you're not sure if you should pay PAYE on your salary.

When is PAYE due to be paid?

Paying monthly

PAYE must usually be paid to HMRC by the 22nd of the next tax month in which your salaries are paid.

Example 1

Susan's business employs 4 members of staff and each member of staff is paid on the last day of each month. In March Susan pays each member of staff on the 31st. The total PAYE due to HMRC for the salaries paid in March is £850, so Susan must pay the £850 PAYE to HMRC no later than 22nd April.

Example 2

Ruben's business employs 6 members of staff and each member of staff is paid weekly on a Saturday. Ruben pays each member of staff on September 6th,  September 13th, September 20th, September 27th and October 4th. The total PAYE due to HMRC for the salaries paid on the above dates is £1,200, so Ruben must pay the £1,200 to HMRC no later than 22nd October.

Paying quarterly

You may also pay your PAYE on a quarterly basis. If you choose to pay on a quarterly basis your PAYE must be paid no later than the 22nd of the month in which the tax quarter ends.

Example 3

Dexter's business employs 2 members of staff and each member of staff is paid monthly on the last day of each month. Dexter pays each member of staff on 30th April, 31st May and 30th June. The total PAYE due to HMRC for the salaries paid on the above dates is £720, so Dexter must pay the £720 to HMRC no later than 22nd July.

If you wish to pay your PAYE on a quarterly basis please inform your accountant.

Tax months

Please note a tax month runs from the 6th of the month to the 5th of the following month. In example 2 above, the salaries paid on October 4th must also be included in the PAYE payment as the date falls within the end of the tax month (5th October).

What information do I need?

You will need your 13-character Accounts Office Reference Number. This reference can be found in your TaxBoxx App under Taxes and Pay As You Earn (PAYE).

If you choose to pay your PAYE by debit or corporate credit card you will also need the tax month period dates in which your payment is for.

Ways to pay

You can pay your PAYE the following ways. We recommend you check your bank's transaction limits and processing times before making payment. Please ensure you allow enough time for your payment to reach HMRC before the deadline. You can view the payment processing times for each payment method below.

Online or telephone banking, CHAPS, BACS

Sort code: 08 32 10
Account number: 12001039
Account name: HMRC Cumbernauld
Reference: Your 13-character Accounts Office Reference Number

How long will my payment take to reach HMRC?

• Faster payments (online/telephone banking): same or next day
• CHAPS payments: same day if you pay within your bank's processing times
• BACS payments: usually 3 working days

By debit or corporate credit card online

There is a fee if you pay by corporate credit card. You cannot pay by personal credit card. Visit tax.service.gov.uk/pay to make payment.

How long will my payment take to reach HMRC?

Allow 3 working days for your payment to reach HMRC.

Other payment methods

There are other ways to pay your PAYE to HMRC however the above payment methods are the ones we recommend. If the above payment methods are not convenient for you please contact your accountant for alternative arrangements.