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 a penalty if you do not.

If you usually pay less than £1,500 per month, you may be able to pay quarterly instead of monthly. Contact the payment helpline to find out.

Viewing what you owe

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

There are things you can check if your PAYE bill is not what you expected.

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. You’ll be charged interest daily at the standard rate.

You may be charged a penalty if you do not pay on time or in full.

  1. Step 1 Check your business is ready to employ staff

  2. Step 2 Recruit someone

    You need to advertise the role and interview candidates. You can use a recruitment agency to do this or do it yourself.

    1. Find out about recruiting someone yourself on Acas
    2. Find out about using a recruitment agency

    As an employer you must make sure you recruit employees fairly.

    1. Avoid discrimination during recruitment
    2. Make your application process accessible for employees with disabilities or health conditions
  3. and Check they have the right to work in the UK

  4. and Find out if they need a DBS check

    You may need to check someone's criminal record, for example, if they'll be working in healthcare or with children.

    1. Find out if you need a DBS check
    2. How to do a DBS check
  5. Step 3 Check if they need to be put into a workplace pension

    Check if you need to put your employee into a workplace pension scheme:

  6. Step 4 Agree a contract and salary

  7. Step 5 Tell HMRC about your new employee