How to Pay your Self-Assessment Tax Bill?
Self-Assessment Tax Bill Payment Deadline
The deadline for paying taxes to HMRC online for financial year 2019-20 is 31st January 2020. In order to avoid fine, penalty & interest, taxpayer must pay the self-assessment tax bill before the deadline.
Ways to Pay Self-Assessment Tax Bill
Make sure that the owed taxes should be paid to HMRC on time (before the deadline i.e. 31st January). You can pay your self-assessment tax bill by different ways. Every method takes some time in processing the tax payment which are as follows –
A. Same day or next day – In order to reach HMRC on same day or next day, following online payment modes should be followed for faster payments -
B. 3 Working days – This payment mode usually takes 3 working days in processing the payment which are as follows -
C. 5 Working days – The maximum time taken by any payment mode in order to clear out a transaction is direct debit (In case you didn’t set up your direct debit account with HMRC). In such cases, transaction usually takes 5 working days in processing the payment.
Pay Self-Assessment Tax Bill through Direct Debit
Set up a direct debit account with HMRC in order to make single tax payment for 31st January and the amount will get automatically deducted from your account.
You need to set up a single payment every time in case you want to do payment by direct debit option.You need to input 11 character payment reference number mentioned in your paying-in slip or HMRC online account in order to make the payment. If you will use the wrong payment reference number, there is a possibility that your payment may get delayed. 11 Characters contain unique taxpayer reference number followed by letter K.
If you are having an existing direct debit account with HMRC online, your transaction may get processed within 3 working days. In case you are setting it up for the first time, processing of transaction may take 5 working days.
Pay Self-Assessment Tax Bill through CHAPS or BACS
Bank Details for Online or Telephone Banking, CHAPS or BACS
You can easily make a bank to bank transfer by your account with the help of various payment methods - CHAPS (Clearing house automated payment system) or BACS for faster payments.
It is the matter of confusion for some people that the tax amount paid by them to HMRC will go into which account. Tax bill clearly explains the account in which you have to put your tax amount. In case, you are not having a tax bill with you or you are unsure about the same, you can use “HMRC Cumbernauld” account.
If case your account is in UK, use the following account details –
Sort code Account number Account name 083210 12001039 HMRC Cumbernauld 083210 12001020 HMRC Shipley -
In case your account is in overseas, use the following account details –
Bank identifier code Account number Account name BARCGB22 GB62BARC20114770297690 HMRC Cumbernauld BARCGB22 GB03BARC20114783977692 HMRC Shipley
Similar to direct debit method, you need to input 11 character payment reference number here also in order to make the payment. In case you will use the wrong payment reference number, there is a possibility that your payment may get delayed.
How much time these payment mode takes?
- Payment by online or telephone banking – Payment done online or by telephone banking usually reach HMRC on the same day or next day including weekends &bank holidays.
- Payment done through CHAPS – Payment done through CHAPS is also considered as one of the fast payment system in which payment usually reach HMRC on the same day or next day. (If paid within bank processing time)
- Overseas payments - Overseas payments may take longer time. If your payment is very much delayed, kindly contact your bank.
In Case of Multiple Payments done by CHAPS (Clearing House Automated Payment System)
Send an online CHAPS enquiry form in case you want to make CHAPS payment for multiple self-assessment bills with the help of more than one payment reference number.
The banking address of HMRC is shown below –
- Barclays Bank PLC
- 1 Churchill place
- London
- UK
- E145HP
Pay Self-Assessment Tax Bill by Cheque through the post
In order to make payment, you can also send cheque by post to HMRC on the address given below –
- HMRC
- Direct
- BX5 5BD
No need to include street name, city name or PO Box with this address. It may take 3 working days to reach HMRC.
What to include?
Make a cheque in the name of “HM revenue & customs only” followed by unique tax payer reference number (UTR) in order to make payment by cheque. You can see UTR number in your online HMRC account or paying-in-slip.
Kindly don’t fold the paying-in-slip or cheque.
In absence of paying-in slip
In the absence of paying-in-slip, print a slip and use the same to make payment through post. This slip cannot be used at a bank near you.
Pay Self-Assessment Tax Bill through your Tax Code
You can easily pay your self-assessment tax bill through your PAYE tax code as long as you are fulfilling the following conditions –
How to set up?
When you meet all the specified conditions mentioned above, HMRC will automatically deduct your tax through your PAYE tax code unless you specifically ask them not to deduct it. In case, you are not eligible, you cannot pay by this method.
When you cannot pay your Self-Assessment Tax Bill through your tax code
You cannot pay through your tax code under the following circumstances–
- In case the income of the individual is below the minimum amount on which person is liable to pay tax.
- In case you are paying more than 50% of your PAYE income in tax.
- In case you end up paying more than the double tax to HMRC than you normally do.
Self-employed persons cannot pay class 2 national insurance through their tax code. It can only be paid in case it is due before 6th April 2015. You can also pay your taxes before the deadline by other ways.
How deductions are made?
Deductions are made by HMRC in equal installments from your salary or pension within 12 months period along with your usual tax deductions.
Pay Self-Assessment Tax Bill Online by Debit Card or Corporate Credit Card
One more method which is widely used by the people to make online payments is paying from debit card or corporate credit card. Corporate credit card contains a non-refundable fee. In such cases, you can’t use your personal credit cards.
In this case too, you need to use the same 11 character unique tax payment reference number followed by the letter “K”.
HMRC accepts the payment on the same date after you make it rather than considering the date on which payment reaches their account. It includes bank holiday & weekends too.
In case you are unable to do full payment through your card, kindly use the option of bank transfer in order to make the payment.
Pay Self-Assessment Tax Bill at your Bank or Building Society
You can easily pay your tax bill by cash or by cheque at the bank branch, if -
Make a cheque in the name of “HM revenue & customs only” followed by unique tax payer reference number (UTR) in order to make payment by cheque. You can see UTR number in your online HMRC account or paying-in-slip.
Budget Payment Plan for Self-Assessment Tax Bill Advance Payment
Budget payment plan is used by many taxpayers in order to make regular payments in advance. If you want to use budget payment plan, ensure that all your self-assessment payments are updated. This payment plan helps you in –
In order to set up your budget payment plan, go to direct debit section and choose budget payment option while filling direct debit form.
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