Self-Assessment Tax Payment Guide: Key Dates and Methods

Payment Methods

There are several ways you can pay your Self Assessment tax bill to HMRC. The easiest method for you will depend on when you need the payment to be processed and whether you want to pay in installments.

1. Bank Transfer (Faster Payments, CHAPS, BACS)

• UK Payments: Use the account details on your Self Assessment bill.
• Overseas Payments:

○ BIC: BARCGB22
○ IBAN Cumbernauld: GB62 BARC 2011 4770 2976 90
○ IBAN Shipley: GB03 BARC 2011 4783 9776 92

• Reference: Always use your UTR + K (e.g., 1234567890K) to ensure the payment is correctly applied.
• Processing Times:

○ Faster Payments → same or next day
○ CHAPS → same working day
○ BACS → up to 3 working days

Tip: Schedule payments a few days earlier than the deadline to account for bank processing delays.

2. Debit/Credit Card

• Debit Cards: Personal debit cards can be used online, free of charge.
• Corporate Cards: Corporate debit/credit cards are allowed, but fees may apply.
• Credit Cards: Personal credit cards are not accepted.
• Reference: UTR + K.
• Payment date counts as the day the transaction is initiated, not when HMRC receives it.

Example: If you pay on 31 January using a debit card online, the payment counts as on time even if it processes on 1 February.

3. Direct Debit

• Set up a Direct Debit for automatic payments on 31 January or 31 July.
• First-time setup takes 5 working days; subsequent payments take 3 days.
• Reference: UTR + K.
• Budget Payment Plan: Spread payments weekly or monthly, useful for managing cash flow. You can pause the plan for up to 6 months if necessary.

Tip: Direct Debit is ideal if you want to avoid missing a deadline — it guarantees payment on time if set up correctly.

4. Online Bank Approval / HMRC App

• Choose “Pay by bank account” through the HMRC portal or app.
• Redirects to your online/mobile banking to approve the payment.
• Typically instant, but can take up to 2 hours.
• You can make multiple partial payments before the due date.

Tip: Confirm the payment in your bank account immediately after submission to ensure it’s applied.

5. Other Methods

• Cheque by mail: Payable to “HM Revenue & Customs Only,” with reference UTR + K.
• Bank or Building Society: Pay with a paper paying-in slip.
• Note: Payments at the Post Office are no longer accepted.

Tip: Cheque payments take longer to process; send them well before the deadline to avoid late penalties.

Managing Payment Plans

If paying the full tax bill in one lump sum is challenging, HMRC offers ways to spread the cost:

1. Budget Payment Plan (Direct Debit)
         ○ Spread payments weekly or monthly.
         ○ Payments go toward your next Self Assessment bill.
         ○ Pause for up to six months if needed.
2. Time to Pay Arrangement
         ○ Formal arrangement for people who cannot pay by the due date.
         ○ Contact HMRC early to avoid penalties and interest.
3.  

Tip: Don’t wait until the last minute if you need a payment plan. HMRC is more likely to approve early requests.

Planning Tips to Avoid Issues

Staying organized throughout the tax year makes self-assessment much easier to handle.

Always use your UTR + K reference:

When making payments to HMRC, use your UTR followed by the “K” suffix. This helps HMRC match your payment to the right account without delays or errors.

Estimate your liability early:

Prepare a rough estimate of what you will owe well before January. This gives you time to prepare, especially if you have income from several sources like self-employment, dividends, property, or capital gains.

Keep a calendar for key deadlines:

Set reminders for 31 January and 31 July. These are the main payment dates for most taxpayers. Regular reminders help you avoid last-minute surprises.

Use Budget Payment Plans or Time to Pay:

If your cash flow is limited, spread the costs out. HMRC’s Budget Payment Plan allows you to pay in smaller instalments throughout the year. If you already owe tax and are unable to pay it in full, a Time to Pay arrangement allows you to pay the remaining balance over a longer period of time.

Check payment processing times:

Different methods clear at different speeds, so plan ahead:

• Faster Payments: same day
• CHAPS: same day
• BACS: around three days
• First-time Direct Debit: around five working days to set up

This is important when making a payment near the deadline.

Keep digital copies of confirmations:

Keep screenshots or PDF receipts for all payments you make. These are useful if HMRC questions a transaction or if something does not appear in your online account.

Review your HMRC account regularly:

Log in to ensure that your payments were applied correctly and that the amounts owed matched your records. If something appears to be wrong, address it as soon as possible to avoid consequences.

Example: If your tax due is £5,000 and you have cash flow issues, you could set up a Budget Payment Plan of £1,000 per month from September to January to avoid late payment penalties.

Upcoming Changes

HMRC is making changes to how taxpayers handle Self Assessment records, filings, and management. Starting preparations early can ensure a smooth transition.

Making Tax Digital (MTD):

From 6 April 2026, individuals with business or property income above £50,000 must keep digital records and submit quarterly updates through approved software.

More automation from HMRC:

HMRC is increasing automated checks and faster digital processing, making online tools more important for keeping your information accurate.

Updates to interest and penalties:

Interest rates and penalty rules may change, so staying aware of HMRC updates helps you avoid unexpected charges.