Tax & admin · 25 January 2018

A handy guide for paying off your tax bill to HMRC

Second bank account
It is important HMRC receives payment as well as self-assessment forms by 31 January
Here, chief FreeAgent accountant, and Business Advice expert, Emily Coltman, provides a useful guide to help self-employed taxpayers pay off their tax bill by HMRC’s deadline.

Wednesday 31 January isnt just the date by which you have to submit your self-assessment for the 2016/17 tax year to HMRC. it’s also the date by which you have to pay your tax bill so it’s important to get organised and make sure that your payment reaches HMRC before the midnight deadline.

Here is a handy rundown of the main payment options that HMRC accepts, how long each type of payment takes to process and how you can use each payment method.

Remember, you can no longer submit your self-assessment at the Post Office.

  1. Online or telephone banking (faster payments)

How long it takes for payment to reach HMRC:?Same or next day, including weekends and public holidays.

How to pay😕By using the bank details listed ongov.uk.?

  1. CHAPS

How long it takes for payment to reach HMRC: Same or next day, including weekends and public holidays.

How to pay:?By using the bank details listed ongov.uk.

  1. Debit card online

How long it takes for payment to reach HMRC: HMRC will accept your payment on the date you make it, not the date it reaches its account including on weekends and bank holidays.

How to pay😕By following the links from yourhMRC online account.

  1. Credit card online (1.5 per cent charge)

How long it takes for payment to reach HMRC: HMRC will accept your payment on the date you make it, not the date it reaches their account ?including on weekends and bank holidays.

How to pay😕By following the links from yourhMRC online account.

  1. At your bank or building society (only an option if you still get paper statements from HMRC)

How long it takes for payment to reach HMRC: Same day (Monday-Friday only).

How to pay: By paying cash or writing a cheque made payable to “HM Revenue and Customs only” followed by your Unique Taxpayer Reference (UTR), followed by the letter “K”.

  1. Bacs

How long it takes for payment to reach HMRC: Three working days.

How to pay:?By using the bank details listed ongov.uk.

  1. Cheque through the post

How long it takes for payment to reach HMRC: Three working days.

How to pay:?By writing a cheque made payable to HM Revenue and Customs only? followed by your Unique Taxpayer Reference (UTR) number. It should be posted along with your paying-in slip to HMRC, Direct, BX5 5BD no street name, city name or PO Box is required.

  1. Existing Direct Debit

How long it takes for payment to reach HMRC: Three working days.

How to pay😕By setting up a Direct Debit from yourhMRC online account?(note that you have to set up a new direct debit every time you wish to make a payment).

  1. New Direct Debit

How long it takes for payment to reach HMRC:?Three working days.


 
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ABOUT THE EXPERT

Emily Coltman is chief accountant to FreeAgent, provider of cloud accounting software for freelancers, micro businesses and accountants. She is passionate about helping the owners of small and growing businesses to escape their ?fear of the numbers? and she translates small business finance and tax into practical common sense speak.

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