How to Make Payments to HMRC: A Complete Guide
Melissa Deacon
Navigating tax payments can seem daunting, but HMRC offers several methods to make it simpler. Whether you’re paying corporation tax or self-assessment tax, this guide will walk you through the three main ways to pay HMRC: via direct bank transfer, your government gateway account, or by setting up a direct debit.
1. Paying HMRC via Direct Bank Transfer
One of the simplest ways to pay your taxes is through a direct bank transfer. You can use this method for both corporation tax and self-assessment tax payments. Here are the bank details for HMRC:
- Sort Code: 08 32 10
- Account Number: 12001039
- Account Name: HMRC Cumbernauld
Important: Use the Correct Payment Reference
The payment reference is crucial, as it tells HMRC what tax you’re paying and to whom it belongs. Make sure you use the correct reference depending on the tax type:
- For Self-Assessment Payments:
Your payment reference is your unique taxpayer reference (UTR), followed by the letter “K.” For example, it will look like this: 0123456789K. Your UTR can be found on letters from HMRC or on your government gateway account. If you can’t find it, you’ll need to contact HMRC directly to request it. - For Corporation Tax Payments:
Your reference number changes each year and is specific to the accounting period you’re paying for. It is a 17-character reference in the following format: 1234567890A00101A. You can find this reference in your company’s HMRC online account by selecting the correct accounting period, or on your ‘Notice to deliver your tax return’ or tax reminders from HMRC.
Paying from Overseas
If you’re paying from overseas, be sure to use the correct HMRC bank details for international transfers, and be aware that some banks may charge additional fees if you’re not paying in pound sterling. You can check HMRC’s guidance for the exact bank details you’ll need.
2. Paying HMRC via Your Government Gateway Account
The government gateway account is another convenient method to pay your taxes. If you have an outstanding or upcoming tax liability, HMRC will notify you through your account and provide an option to make payment directly.
By using the gateway, many of your payment details are automatically populated, making the process quicker and easier. Follow the links below to pay either your self-assessment or corporation tax:
- Self-Assessment Tax Payment: Pay Self-Assessment
- Corporation Tax Payment: Pay Corporation Tax
3. Setting Up a Direct Debit
If you prefer to automate your payments or want to spread your tax liability over a longer period, HMRC allows you to set up a direct debit. This option can be particularly helpful in avoiding the stress of remembering payment deadlines.
Setting Up a Direct Debit for Self-Assessment
To set up a direct debit for self-assessment, you’ll need to do it through your HMRC online account. HMRC provides a simple guide to help you with the steps. Click the following link to set up your direct debit: Set Up Self-Assessment Direct Debit.
Important: Your direct debit payment reference will be the same as your UTR followed by the letter “K” (e.g., 0123456789K).
Allow 5 working days for the direct debit to process the first time you set it up. Once it’s in place, subsequent payments should take only 3 working days to process if you’re using the same bank details.
Setting Up a Direct Debit for Corporation Tax
For corporation tax, you’ll also need to set up the direct debit through your government gateway account. Similar to self-assessment, the reference you’ll need is the 17-character corporation tax payment reference number specific to the accounting period you’re paying for. You can follow this link to set up the direct debit: Set Up Corporation Tax Direct Debit.
Again, give yourself 5 working days for the first direct debit to process, with future payments taking 3 working days once the initial setup is complete.
Paying taxes doesn’t have to be a complicated process. Whether you prefer to transfer funds directly, use your government gateway account, or set up a direct debit, HMRC provides various payment options to suit your needs. Just remember to use the correct payment reference and allow for processing times.
For more guidance on handling your business taxes, feel free to contact us at Helpbox. We’re here to ensure you stay on top of your tax obligations and avoid any unnecessary hassles with HMRC.