Pay Contributions Equivalent Premiums
Find out how to pay your Contributions Equivalent Premiums and the time it takes for payments to reach HMRC.
Overview
Employers or pension scheme administrators pay a Contributions Equivalent Premium (CEP) when an employee leaves and:
- has less than 2 years pensionable service
- is not entitled to any benefits from a contracted-out salary related scheme
- has rights in the state scheme that can be restored by payment of a CEP
How much time to allow
You must pay HMRC by the deadline or you may have to pay a penalty.
The time you should allow depends on how you pay.
| Payment method | Time allowance |
|---|---|
| Online or telephone banking (Faster Payments) | Same or next day |
| CHAPS | Same or next day |
| Government Banking Service | Same or next day |
| At your bank or building society | Same or next day |
| Bacs | 3 working days |
| By cheque through the post | 3 working days |
If the deadline falls on a weekend or bank holiday, make sure your payment reaches HMRC on the last working day before (unless you’re paying by Faster Payments).
Ways to pay
Bank details for online or telephone banking, CHAPS and Bacs
You can pay by Faster Payments, CHAPS or Bacs to HMRC’s account.
| Sort code | Account number | Account name |
|---|---|---|
| 20 20 48 | 30944793 | HMRC NIC receipts |
You’ll need your 9-character Scheme Contracting Out Number (SCON). You’ll find this on your contracting out certificate.
Your payment may be delayed if you use the wrong reference number.
Payments by:
- Faster Payments (online or telephone banking) usually reach HMRC on the same or next day, including weekends and bank holidays
- CHAPS usually reach HMRC the same working day if you pay within your bank’s processing times
- Bacs usually take 3 working days
Check your bank’s transaction limits and processing times before making a payment.
The Government Banking Service (GBS)
Employers such as government departments and health authorities who have a GBS account can pay using the GBS online service.
If you enter HMRC’s GBS account details incorrectly there may be a delay updating your record or your payment may not reach HMRC.
As long as you make a payment by the GBS deadline it will reach HMRC on the same day.
At your bank or building society
Use your payslips to pay at your own bank or building society. You can pay by cash or cheque made payable to ‘HM Revenue and Customs only’ followed by your 9-character SCON. This is on your contracting out certificate.
Your payment may be delayed if you use the wrong reference number.
HMRC will accept your payment on the date you make it and not the date it reaches our account, if you pay between Monday and Friday.
By cheque through the post
Send your cheque made payable to ‘HM Revenue and Customs only’ followed by your 9-character SCON. This is on your contracting out certificate.
Do not fold the cheque or fasten it to other documents.
HMRC will accept your payment on the date you make it and not the date it reaches our account, if you pay between Monday and Friday.
HM Revenue and Customs
NISPI Payments
Room BP2102
Benton Park View
Newcastle upon Tyne
NE98 1ZZ
If you’re paying by post, you can include a letter with your payment to ask for a receipt from HMRC.
Last updated 15 May 2019 + show all updates
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HMRC’s account name to use for paying by online or telephone banking, CHAPS and Bacs has been changed to 'HMRC NIC receipts'.
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Payments can no longer be made at a Post Office.
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Guidance updated to show it won't be possible to pay at the Post Office from 15 December 2017.
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Information about payments at a Post Office from December 2017 has been added to the guide.
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Guidance has been updated to advise that all Post Offices don't accept payment by cheque.
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Bank details have been updated.
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Employers or pension scheme administrators can pay Contribution Equivalent Premiums to HM Revenue and Customs at a Post Office (subject to a £10,000 limit).
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First published.