Payroll operations UK-wide

Pay PAYE to HMRC

How and when to pay your PAYE tax and National Insurance to HMRC.

Guide summary

Pay your PAYE tax and National Insurance to HMRC by the 22nd of each month (electronic) or 19th (cheque). You can pay quarterly if your average monthly bill is under £1,500. If you cannot pay on time, contact HMRC early to arrange a payment plan.

  • Pay electronically by the 22nd of the month after you run payroll
  • Pay by cheque so it reaches HMRC by the 19th of the month after payroll
  • Switch to quarterly payments if average monthly PAYE is below £1,500
  • Use the correct 13-character Accounts Office reference when paying
  • Claim Employment Allowance up to £10,500 per year (from April 2025)
  • Set up a Direct Debit to pay automatically by the 22nd each month
  • Face penalties from 1% to 4% of the amount late for each default
  • Keep filing your payroll reports even if you cannot pay on time
On this page

Related guides in Tax & Finance

Close your PAYE scheme

How to permanently close your PAYE scheme with HMRC, including final FPS submission, issuing P45s to all employees, …

After running payroll, you must pay the tax and National Insurance you have deducted to HMRC. This guide explains when to pay, how to pay, and what to do if you cannot pay on time.

What you owe HMRC

Your monthly or quarterly PAYE bill consists of:

  • Income tax deducted from employees
  • Employee National Insurance (Class 1 primary)
  • Employer National Insurance (Class 1 secondary)
  • Student loan deductions (if any employees repaying)
  • Postgraduate loan deductions (if any employees repaying)

Less:

  • Statutory payment recovery (SMP, SPP, SAP, ShPP, SPBP)
  • Employment Allowance (up to £10,500 if eligible)
  • CIS deductions suffered (for construction businesses)

How to pay

HMRC accepts payment through several methods. Allow time for payments to reach HMRC:

  • Direct Debit - set up to pay automatically (collected by 22nd)
  • Online banking - same-day or next-day (3 working days for Bacs)
  • CHAPS - same-day transfer (may incur bank fees)
  • Debit card online - same day through HMRC website
  • At your bank - with payslip booklet
  • Cheque by post - must reach HMRC by 19th

Payment reference

Always use the correct reference number when paying:

  • Accounts Office reference - 13 characters (for example, 123PA00012345)
  • Add period - for monthly payments add year and month (for example, 2601 for January 2026)
  • Wrong reference - payment may be allocated incorrectly or lost

If you cannot pay on time

If you are struggling to pay:

  1. Contact HMRC early - Before the deadline if possible
  2. Request Time to Pay - HMRC may agree a payment plan
  3. Pay what you can - partial payment reduces interest charged
  4. Keep filing - submit FPS and EPS even if you cannot pay

Warning - directors can be personally liable for unpaid PAYE in certain circumstances.