How to pay your tax bill

Different taxes are paid in different ways and to different HMRC accounts. It is important to use the correct reference number so HMRC can allocate your payment properly.

Below is a clear guide to paying the most common types of tax.

Self Assessment tax

This applies to:

• Sole traders

• Company directors filing a personal tax return

• Individuals with rental or other untaxed income

When it is due

• 31 January for your balancing payment and first payment on account

• 31 July for your second payment on account

How to pay

You will need your 10 digit Unique Taxpayer Reference, known as your UTR, followed by the letter K as the payment reference.

You can pay by:

• Online or telephone banking

• Debit card online

• Direct Debit

• Bank transfer

• Through your online HMRC account

Payment options are explained here:
https://www.gov.uk/pay-self-assessment-tax-bill

Corporation Tax

This applies to limited companies.

When it is due

Corporation Tax is usually due 9 months and 1 day after the end of your company’s accounting period.

For example, if your year end is 31 March, payment is usually due by 1 January the following year.

How to pay

You must use your 17 character Corporation Tax payment reference. This is different from your company registration number.

Payment options are explained here:
https://www.gov.uk/pay-corporation-tax

Corporation Tax cannot be paid by personal credit card.

VAT

This applies if your business is VAT registered.

When it is due

VAT is usually due:

• 1 month and 7 days after the end of your VAT period

For example, if your VAT quarter ends on 31 March, payment is normally due by 7 May.

How to pay

Most VAT payments are made by:

• Direct Debit

• Online banking or bank transfer

You must use your 9 digit VAT registration number as the payment reference.

Payment options are explained here:
https://www.gov.uk/pay-vat

PAYE and payroll taxes

This applies if you have employees or pay yourself through payroll as a director.

You must pay HMRC:

• Income Tax deducted from employees

• Employee National Insurance

• Employer National Insurance

• Student loan deductions

• Apprenticeship Levy if applicable

When it is due

• By the 22nd of the following month if paying electronically

• By the 19th if paying by post

Some small employers can pay quarterly instead of monthly.

How to pay

You must use your Accounts Office reference number as the payment reference, not your PAYE reference.

Payment options are explained here:
https://www.gov.uk/pay-paye-tax

Capital Gains Tax

If you sell certain assets such as property or shares, you may need to pay Capital Gains Tax.

For UK residential property, tax is usually due within 60 days of completion.

For other gains reported through Self Assessment, payment is due by 31 January following the end of the tax year.

Payment guidance is available here:
https://www.gov.uk/capital-gains-tax

Workplace pension contributions

If you use a workplace pension scheme such as NEST, pension contributions are not paid to HMRC. They are paid directly to your pension provider.

Payment deadlines are usually:

• By the 22nd of the month following deduction if paying electronically

You must use the payment reference provided by your pension provider.

Important reminders

• Always use the correct payment reference

• Allow enough time for payments to clear before the deadline

• Filing a return does not mean payment has been made

• Late payments can result in interest and penalties

If you are unsure which reference to use or how much to pay, it is important to check before making the payment to avoid delays or misallocated funds.