Pay a PAYE Settlement Agreement

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1. Overview

You must pay the tax and Class 1B National Insurance due from your PAYE Settlement Agreement (PSA) by 22 October following the tax year it applies to.

This guide is also available in Welsh (Cymraeg).

Pay online

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

You can pay online by:

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

Pay now

Other ways to pay

You can choose to pay in other ways. The time you need to allow depends on how you pay.

You can no longer pay at the Post Office.

Same or next day

3 working days or more

5 working days

If the deadline falls on a weekend or bank holiday, make sure your payment reaches HMRC on the last working day before it (unless you’re paying by Faster Payments using online or telephone banking).

2. Direct Debit

Set up a Direct Debit through your business’s HM Revenue and Customs (HMRC) online account to make a single payment. This means you’ll need to set up a payment each time you pay HMRC through Direct Debit.

Use your reference number

You’ll need your 14-character PAYE Settlement Agreement (PSA) reference number starting with X when you pay. You’ll find this on the payslip HMRC sent you.

If you do not have your PSA reference number, contact the HMRC employer helpline.

Do not use your PAYE Accounts Office reference number. Your payment may be delayed if you use the wrong reference.

How long it takes

Allow 5 working days to process a Direct Debit the first time you set one up. It should take 3 working days next time if you’re using the same bank details.

If you pay PAYE or Class 1 National Insurance contributions by Direct Debit, make a separate Direct Debit payment for your PSA.

3. Approve a payment through your online bank account

You can pay your PAYE Settlement Agreement 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 PAYE Settlement Agreement payment. Select ‘pay by bank account’. You’ll then be directed to sign in to your online or mobile banking account to approve your PAYE Settlement Agreement payment.

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 sometimes it takes up to 2 hours to show in your account.

4. Make an online or telephone bank transfer

You can pay by Faster Payments, CHAPS or Bacs.

Reference number

You’ll need your 14-character PAYE Settlement Agreement (PSA) reference number starting with X when you pay. You’ll find this on the payslip HM Revenue and Customs (HMRC) sent you.

If you do not have your PSA reference number, contact the HMRC employer helpline.

Do not use your PAYE Accounts Office reference number. Your payment may be delayed if you use the wrong reference.

If you’re paying from a UK bank account

Pay into this HMRC account:

  • sort code - 08 32 10
  • account number - 12001020
  • account name - HMRC Shipley

If you’re paying from an overseas bank account

Pay into this HMRC account:

  • account number (IBAN) - GB03 BARC 2011 4783 9776 92
  • bank identifier code (BIC) - BARCGB22
  • account name - HMRC Shipley

Overseas payments should be in sterling and your bank may charge you if you use any other currency.

HMRC’s banking address is:

Barclays Bank PLC
1 Churchill Place
London
United Kingdom
E14 5HP

How long it takes

Payments made by Faster Payments (online or telephone banking) will 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.

5. 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 PAYE Settlement Agreement (PSA) in full by card, you should use another payment method like a bank transfer.

Reference number

You’ll need your 14-character PSA reference number starting with X when you pay. You’ll find this on the payslip HMRC sent you.

If you do not have your PSA reference number, contact the HMRC employer helpline.

Do not use your PAYE Accounts Office reference number. Your payment may be delayed if you use the wrong reference.

6. At your bank or building society

You can pay at your branch by cash or cheque. You’ll need to use the payslip sent to you by HMRC.

Make your cheque payable to ‘HM Revenue and Customs only’.

Write your 14-character PAYE Settlement Agreement (PSA) payment reference number starting with X on the back of your cheque. You’ll find this on the payslip HMRC sent you.

HMRC will accept your payment on the date you make it (if you pay it from Monday to Friday) and not the date it reaches HMRC’s account.

7. 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 14-character PAYE Settlement Agreement (PSA) payment reference number starting with X on the back of your cheque. You’ll find this on the payslip HMRC sent you.

Include the payslip HMRC sent you. Do not fold the payslip or cheque or fasten them together.

If you do not have your PSA reference number, contact the HMRC employer helpline.

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.

8. Check your payment has been received

You can check your bank or building society statement to confirm the payment has left your account.

If you’re paying by post, you can include a letter with your payment to request a receipt from HM Revenue and Customs (HMRC).