9. Through your tax code

You can pay your Self Assessment bill through your PAYE tax code as long as all these apply:

  • you owe less than £3,000 on your tax bill
  • you already pay tax through PAYE, eg you’re an employee or you get a company pension
  • you submitted your paper tax return by 31 October or your online tax return online by 30 December

How it’s set up

HM Revenue and Customs (HMRC) will automatically collect what you owe through your tax code if you meet all 3 conditions, unless you’ve specifically asked them not to (on your tax return).

If you’re not eligible, you won’t be able to pay this way.

When you can’t pay through PAYE

You won’t be able to pay your tax bill through PAYE if:

  • you don’t have enough PAYE income for HMRC to collect it
  • you’d pay more than 50% of your PAYE income in tax
  • you’d end up paying more than twice as much tax as you normally do

How deductions are made

The tax you owe will be taken from your salary or pension in equal instalments over 12 months, along with your usual tax deductions.