HOW TO PAY YOUR INCOME TAX BILL

Quite a few business owners are paying income tax from their tax assessment for the first time as this is the first tax year when there has been a tax on dividends.

If you have not had to make a tax payment before and are not sure how to do it, here are a few ways.

Note that income tax is due by 31st January, and interest, and sometimes penalties, can be charged if it is paid late.

PAY BY BACS/BANK TRANSFER ONLINE

If you use internet banking, it is very easy to make your payment, and most payments are now “faster payments” and go through within 2 hours if you are paying at the last minute!

You will need your unique tax reference (sometimes referred to as your UTR), and then add the letter K on the end. It should be 10 characters long, 11 with the K and you will find it on your tax return or any correspondence from HMRC.

Some banks have HMRC Cumbernauld and HMRC Shipley (the main Collectors offices) set up on their systems which you can look up. It may be worth trying this first, as if you input the details first, it won’t accept them if it is set up already…

If your bank hasn’t got them set up, here are the bank details:

Sort code Account number Account name
08 32 10 12001039 HMRC Cumbernauld
08 32 10 12001020 HMRC Shipley

If in doubt, use Cumbernauld.

If your account is overseas, use these details:

Bank identifier code (BIC) Account number (IBAN) Account name
BARCGB22 GB62BARC20114770297690 HMRC Cumbernauld
BARCGB22 GB03BARC20114783977692 HMRC Shipley

BY DEBIT CARD ONLINE

If you have a Government Gateway account (ie you can access your self assessment online) you can log in and pay by debit card online. 

Please note, you can no longer pay by personal credit card.

BY CHEQUE THROUGH THE POST

Send your cheque to:

HMRC
Direct
BX5 5BD

(that’s it!)

If you have a reply envelope showing a different address (HMRC, Bradford BD98 1YY), you can still use the envelope to post your cheque.

Make your cheque payable to ‘HM Revenue and Customs only’ followed by your Unique Taxpayer Reference (UTR) number.

Include the paying-in slip HMRC sent you (if you still get paper statements). Don’t fold the paying-in slip or cheque or fasten them together.

If you don’t have a paying-in slip you can print one out here: http://www.hmrc.gov.uk/gds/payinghmrc/payslip-sa1.htm (scroll down to the bottom).

Allow a few days for it to get to HMRC before the deadline.

IN YOUR BANK OR BUILDING SOCIETY

You can also go into your bank or building society and pay in the branch but only if you have a paper statement from HMRC and have the paying in slip they have sent you. Presumably they are encouraging us all to pay online which is cheaper and more efficient for them.

Hoping your week is not too taxing.

Atkinsons

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