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How to pay your tax

How to pay your tax

Deadline for paying tax due is 31 January.

Understanding your payment options can help you avoid penalties, interest, and last-minute stress.

Below is a simple, easy-to-follow guide to the different methods you can use to pay your Self Assessment tax bill.

  1. Pay Online via Bank Transfer (Faster Payments)

This is one of the quickest and most reliable ways to pay.

✔ you Can pay via your Gateway account of if you don’t have one or forgot signing details you can choose option to pay without signing
✔ Sent directly from your bank to HMRC
✔ You’ll need your 11-digit Unique Taxpayer Reference (UTR) as the payment reference

This method works best if you’re paying close to the deadline and want to ensure your payment clears quickly.

  1. Pay Using the HMRC App

The HMRC app is becoming increasingly popular because it’s quick, secure, and lets you view your balance instantly.

You can pay through:

  • Bank transfer
  • Debit card
  • Recurring card payments

✔ Easy for mobile users
✔ Lets you track previous payments
✔ Allows you to see exactly what you owe

  1. Set Up a Direct Debit

Direct Debit is ideal if you prefer a simple, automated approach.

You can choose:

  • One-off Direct Debit
  • Monthly Budget Payment Plan

Important:

Direct Debits take a few days to set up, so avoid leaving it to the last minute.

  1. Pay by Debit or Corporate Credit Card

You can pay online using a card – online or via your Gateway account.

✔ Instant confirmation
Personal credit cards are not accepted — only corporate cards
✘ A fee applies for corporate credit cards

If using this method, always check your card limits in advance.

  1. Pay at Your Bank or Building Society

If you received a payslip from HMRC, you can pay in person at your bank or building society.

✔ Useful for people who prefer in-person payments
✘ You must have the payslip
✘ Payments may not clear immediately

This method is becoming less common but is still available.

  1. Pay by Cheque Through the Post

Though slower and less frequently used, you can send a cheque with your HMRC payslip.

Important reminders:

  • Post it well before the deadline
  • Cheques must be payable to: ‘HM Revenue and Customs only’
  • Include your 11-digit UTR as the reference

Because of postal delays, this is the least recommended option.

You can send a cheque by post to HM Revenue and Customs (HMRC).

HMRC
Direct
BX5 5BD

  1. Set Up a Payment Plan (Time to Pay)

If you’re unable to pay the full amount by 31 January, HMRC may allow you to set up a payment plan, as long as:

  • You owe less than £30,000
  • Your returns are filed
  • You set it up online without calling HMRC

A payment plan allows you to spread the cost over monthly instalments.

✔ Avoids penalties

✔ You can set up weekly or monthly payments
✔ Helps manage cash flow
✘ Interest still applies until the balance is fully paid

Which Method Is Best?

It depends on your situation:

  • Need instant clearance? → Bank transfer / HMRC app
  • Want things automated? → Direct Debit
  • Struggling to pay? → Set up a payment plan
  • Prefer traditional methods? → Bank or cheque payments
  •  

Whatever method you choose, make sure your payment reaches HMRC before the deadline to avoid unnecessary penalties or interest.

You need any help – contact us.

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