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Making Your PAYE Payments

Why not make it simple and pay HMRC by Direct Debit?

If you manage your own direct payments or PHB funds, you can now pay your monthly or quarterly PAYE bill (Tax and National Insurance contributions) to HMRC by Direct Debit, making this one less thing to think about!

HMRC will automatically collect the payment from your bank account based on the amount in your payroll return. You’ll only need to set the Direct Debit up once.

You will need to set up the direct debit at least 4 working days before your payment due date.

HMRC will usually take the payment either:

  • shortly after the 22nd of the month
  • 4 working days after you file the return (if you file it after the 19th of the month)

HMRC will tell you the date and amount no later than 3 working days before the payment is collected. The payments will show on your bank statement as ‘HMRC SDDS’.

Making Your PAYE Payments

As an employer, you have a legal obligation to deduct income tax and national insurance contributions (NIC) from your employees’ wages and pensions, and pay them to HM Revenue and Customs (HMRC) through the Pay As You Earn (PAYE) system.

This ensures that your employees pay the right amount of tax and NIC on their income, and that you comply with the tax laws and regulations.

But how do you make your PAYE payments to HMRC? What are the deadlines and methods of payment? And what happens if you pay late or not at all? In this newsletter, we will answer these questions and provide you with some useful tips and resources to help you manage your PAYE payments efficiently and effectively.


How to make your PAYE payments

You can make your PAYE payments online, by phone, or by post. The method you choose depends on your preference, convenience, and availability. Here are some of the most common ways to pay your PAYE bill:

When to make your PAYE payments

You must pay your PAYE bill to HMRC by:

  • Between the 6th and the 19th of October

If you pay by cheque through the post, it must reach HMRC by the 19th of the month.

If the deadline falls on a weekend or bank holiday, make sure your payment reaches HMRC on the last working day before it (unless you are paying by Faster Payments using online or telephone banking).

You can check when your payment has been received by logging into your HMRC online account and viewing your statement.

What happens if you pay late or not at all

You may have to pay interest and penalties if your payment is late or not enough. The amount of interest and penalties depends on how late and how much you owe. You can avoid interest and penalties by paying on time and in full.

If you are unable to pay your PAYE bill in full by the deadline, you should contact HMRC as soon as possible and explain why. They may be able to arrange a payment plan with you, or give you more time to pay. However, this is not guaranteed, and you may still have to pay interest and penalties.

If you do not contact HMRC and do not pay your PAYE bill, they may take further action against you, such as:

  • Sending debt collection agencies to recover the money.
  • Taking money directly from your bank account.
  • Taking legal action against you in court.
  • Seizing and selling your assets.