7. Paying HMRC

Every month you have to pay HM Revenue and Customs (HMRC):

Pay what you owe by the 22nd of the month (or the 19th if paying by post) - you may have to pay interest if you don’t.

You may be able to pay quarterly if you usually pay less than £1,500 per month - contact HMRC’s payment enquiry helpline.

Viewing what you owe

View your HMRC online account to see the reports you’ve sent and to find out what you owe.

If the amount isn’t what you expected

Check that you sent your FPS or EPS in time for the account to update.

Your PAYE bill may be calculated incorrectly, and payroll records duplicated, if you made a mistake when reporting employees starting or leaving. HMRC usually removes duplicates and corrects your PAYE bill automatically, which you can view by the 12th of the following tax month.

You may also need to correct an error in your FPS or EPS, or make an additional payment.

If you still need help, contact HMRC’s employer helpline.

How to pay

You can pay your PAYE bill in a number of different ways.

Interest and penalties

HMRC will usually tell you if they think you’ve paid late - either in a letter or a notice through PAYE Online. Interest is charged daily at 3% - HMRC has guidance on how and when this is applied.

You may be charged a penalty if you don’t pay on time or in full. From April 2015, HMRC will charge penalties for all late PAYE payments.

You may also be charged a penalty if you make any inaccuracies that result in tax being unpaid, understated or over-claimed.

Early or late payments

Payments are considered:

  • early if paid before the start of the tax month you want to pay for
  • late if paid after the end of the tax month you want to pay for

If you make an early or late payment, tell HMRC the tax year and the tax month the payment is for. How you do this depends on your payment method.