You must pay Class 1A National Insurance contributions on work benefits you give to your employees, such as a company mobile phone. You must also pay them on payments of more than £30,000 that you make to employees when their employment ends, such as a redundancy payment (‘termination awards’). This guide is also available in Welsh (Cymraeg) . You only have to pay Class 1A National Insurance contributions on termination awards if you have not already paid Class 1 National Insurance contributions on them. There’s different guidance on payment of Class 1A National Insurance on sporting testimonials . When to pay When you pay Class 1A National Insurance contributions depends on whether they are work benefits or termination awards. Work benefits You need to pay contributions on work benefits by 22 July each year for the previous tax year. You’ll need to pay by 19 July if paying by post. Termination awards You pay contributions on termination awards through PAYE . Pay contributions on work benefits online You can pay online by: approving through your bank account Direct Debit (pay automatically or one-off payment) debit or corporate credit card Pay now Other ways to pay contributions on work benefits Make sure you pay HM Revenue and Customs ( HMRC ) by the deadline. You may have to pay interest and penalties if your payment is late. The time you need to allow depends on how you pay. Same or next day approve a payment through your online bank account online or telephone banking by Faster payments or CHAPS online by debit or corporate credit card 3 working days Direct Debit (if you’ve set up one for HMRC before) online or telephone banking by Bacs by cheque through the post 5 working days Direct Debit (if you have not set up one for HMRC before) If the deadline falls on a weekend or bank holiday, your payment must arrive in HMRC’s bank account on the last working day of the week (unless you’re paying by Faster Payments using online or telephone banking ). Payment booklets HMRC no longer sends printed payment booklets. You can still pay tax you owe from the tax year 6 April 2023 to 5 April 2024 at your bank or building society using a payment booklet, if you already have one. To pay tax for the current tax year, you must choose another way to pay.

You can set up a Direct Debit through your HM Revenue and Customs ( HMRC ) online account to either: pay your bill automatically make a single payment You cannot use an existing Direct Debit for standard PAYE payments. Pay your bill automatically HMRC will automatically collect the payment from your bank account based on the amount in your return. You’ll only need to set the Direct Debit up once. Set it up 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’. HMRC will automatically collect the payment from your bank account if you have a Variable Direct Debit for Employers’ PAYE in place. Make a single payment You’ll need to give a 17-character payment reference. This starts with your 13-character Accounts Office reference number. You can find this on the letter HMRC sent you when you first registered as an employer. Add the tax year you want to pay for and the digits ‘13’. If you do not do this, your payment will be allocated to the current tax year instead. Example Your Accounts Office reference number is 123PA00012345. To make a payment for the 2023 to 2024 tax year, add the digits ‘2413’ to your reference number. Your 17-character reference is 123PA000123452413. Allow 5 working days to process a Direct Debit the first time you set one up. It should take 3 working days the next time if you’re using the same bank details. If you’ve not used your Direct Debit for 2 years or more, check with your bank that it’s still set up.

Approve a payment through your online bank account

You can pay Class 1A National Insurance directly using your online or mobile bank account. You’ll need to have your banking details ready before you start. When you’re ready to pay, start your Class 1A National Insurance payment . Select ‘pay by bank account’. You’ll then be directed to sign in to your online or mobile banking account to approve a payment to ‘HMRC Shipley’. You can select a date to pay, as long as it’s before your payment is due. Check your account to make sure that the payment has gone out on the correct day. If the payment has not gone out as expected, speak to your bank. The payment is usually instant but can take up to 2 hours to show in your bank account.

Make an online or telephone bank transfer

You can pay by Faster Payments, CHAPS or Bacs to HM Revenue and Customs’ ( HMRC ) account. Sort code Account number Account name 08 32 10 12001039 HMRC Cumbernauld Reference number You’ll need to give a 17-character number as the payment reference. This starts with your 13-character Accounts Office reference number. Then add the tax year you want to pay for and the digits ‘13’ to make sure your payment is assigned correctly. Tax year Add these digits to your reference number 2022 to 2023 2313 2023 to 2024 2413 2024 to 2025 2513 Example Your Accounts Office reference number is 123PA00012345. To make a payment in July 2024 for the previous 2023 to 2024 tax year, add the digits ‘2413’ to your reference number so that your reference is now 123PA000123452413. You can find your Accounts Office reference number on the letter HMRC sent you when you first registered as an employer. You must make a separate payment for Class 1A payments. You cannot add them to a standard PAYE payment. How long it takes Payments by Faster Payments (online or telephone banking) usually reach HMRC on the same or next day, including weekends and bank holidays. CHAPS payments usually reach HMRC the same working day if you pay within your bank’s processing times. Bacs payments usually take 3 working days. Check your bank’s transaction limits and processing times before making a payment. Overseas payments Use these details to pay from an overseas account: Account number (IBAN) Bank identifier code ( BIC ) Account name GB62BARC20114770297690 BARCGB22 HMRC Cumbernauld Some banks will charge you if you do not pay in pound sterling. HMRC ’s banking address is: Barclays Bank PLC 1 Churchill Place London United Kingdom E14 5HP

By debit or corporate credit card online

You can pay online . There’s a fee if you pay by corporate credit card or corporate debit card. The fee is not refundable. There’s no fee if you pay by personal debit card. You cannot pay by personal credit card. HM Revenue and Customs ( HMRC ) will accept your payment on the date you make it (even on bank holidays and weekends) - not the date it reaches HMRC ’s account. If you’re unable to pay your Class 1A National Insurance bill in full by card, you should use another payment method like a bank transfer. Reference number Make your payment to ‘ HMRC Cumbernauld’ office. You’ll need to give a 17-character payment reference. This starts with your 13-character Accounts Office reference number. You can find this on the letter HMRC sent you when you first registered as an employer. Add the tax year you want to pay for and the digits ‘13’. If you do not do this, your payment will be allocated to the current tax year instead. Example Your Accounts Office reference number is 123PA00012345. To make a payment for the 2023 to 2024 tax year, add the digits ‘2413’ to your reference number. Your 17-character reference is 123PA000123452413.

By cheque through the post

You can send a cheque by post to HM Revenue and Customs ( HMRC ). HMRC Direct BX5 5BD You do not need to include a street name, city name or PO box with this address. Allow 3 working days for your payment to reach HMRC . What to include Make your cheque payable to ‘HM Revenue and Customs only’. Write your Class 1A reference number on the back of the cheque. You’ll find this on your payslip. Include the payslip HMRC sent you. Do not fold the payslip or cheque or fasten them together. Your payment may be delayed if you do not fill in your cheque properly. If you want a receipt, include a note asking for one. If you do not have a payslip You can print a payslip to use to pay by post. You cannot use this at a bank.

Check your payment has been received

Check your HM Revenue and Customs (HMRC) online account - it should update within 6 working days. If you’re paying by cheque through the post, you can include a letter with your payment to request a receipt from HMRC.

Class 1A contributions on sporting testimonials

A sporting testimonial is an event or series of events to honour a player for their service, such as when the player retires. The testimonial committee must pay Class 1A National Insurance if the payment to a player is: more than £100,000 not in the player’s contract The payment is usually the profit from the event. The committee must pay the contributions on the payment through PAYE .

Pay employers' Class 1A National Insurance

Overview

You must pay Class 1A National Insurance contributions on work benefits you give to your employees, such as a company mobile phone.

You must also pay them on payments of more than £30,000 that you make to employees when their employment ends, such as a redundancy payment (‘termination awards’).

This guide is also available in Welsh (Cymraeg).

You only have to pay Class 1A National Insurance contributions on termination awards if you have not already paid Class 1 National Insurance contributions on them.

There’s different guidance on payment of Class 1A National Insurance on sporting testimonials.

When to pay

When you pay Class 1A National Insurance contributions depends on whether they are work benefits or termination awards.

Work benefits

You need to pay contributions on work benefits by 22 July each year for the previous tax year. You’ll need to pay by 19 July if paying by post.

Termination awards

You pay contributions on termination awards through PAYE.

Pay contributions on work benefits online

You can pay online by:

approving through your bank account
Direct Debit (pay automatically or one-off payment)
debit or corporate credit card

Pay now

Other ways to pay contributions on work benefits

Make sure you pay HM Revenue and Customs (HMRC) by the deadline. You may have to pay interest and penalties if your payment is late.

The time you need to allow depends on how you pay.

Same or next day

approve a payment through your online bank account
online or telephone banking by Faster payments or CHAPS
online by debit or corporate credit card

3 working days

Direct Debit (if you’ve set up one for HMRC before)
online or telephone banking by Bacs
by cheque through the post

5 working days

Direct Debit (if you have not set up one for HMRC before)

If the deadline falls on a weekend or bank holiday, your payment must arrive in HMRC’s bank account on the last working day of the week (unless you’re paying by Faster Payments using online or telephone banking).

Payment booklets

HMRC no longer sends printed payment booklets.

You can still pay tax you owe from the tax year 6 April 2023 to 5 April 2024 at your bank or building society using a payment booklet, if you already have one. To pay tax for the current tax year, you must choose another way to pay.

View a printable version of the whole guide

Pay employers' Class 1A National Insurance

Overview

When to pay

Work benefits

Termination awards

Pay contributions on work benefits online

Other ways to pay contributions on work benefits

Same or next day

3 working days

5 working days

Payment booklets

Is this page useful?

Help us improve GOV.UK

Help us improve GOV.UK

Cookies on GOV.UK

Pay employers' Class 1A National Insurance

Overview

When to pay

Work benefits

Termination awards

Pay contributions on work benefits online

Other ways to pay contributions on work benefits

Same or next day

3 working days

5 working days

Payment booklets

Related content

Is this page useful?

Help us improve GOV.UK

Help us improve GOV.UK