Now you’ve completed your tax return and it’s been submitted, you’ll also need to make sure any additional tax due is paid over to HMRC at the appropriate deadline.
How to make payment to HMRC
The most common way to pay your tax bill is using your online banking, here are the bank details you can use. Usually your bill from HMRC will tell you which account to pay it into, but if you haven’t seen your bill yet, or are still not sure, please default to the Cumbernauld account.
|Sort code||Account number||Account name|
|08 32 10||12001039||HMRC Cumbernauld|
|08 32 10||12001020||HMRC Shipley|
Your payment reference will be your Unique Tax Reference (UTR) with a K on the end. Your UTR is a 10 digit number, so your payment reference will be in the following format: 9999999999K . Your UTR can be found on any piece of HMRC correspondence or on your tax return itself. Please remember that this UTR is a piece of personal information, so care should be taken to keep it safe – ideally not entering it into an email.
Other ways to make a payment to HMRC for your personal tax can be found on the HMRC website: https://www.gov.uk/pay-self-assessment-tax-bill
When to make payment to HMRC
All tax for the last tax year will need to be remitted to HMRC by 31 January. So for the 20/21 tax year, tax will need to be all paid up by 31 January 2022. Where payments are not received on time, interest will usually be charged to your account.
Payment on Account – where your tax due is more than £1000 (i.e. through self employment, property income etc as your employment income is taxed through the year through the PAYE system), HMRC will ask you to make a payment on account for the next tax year. Although you can request to reduce your payment on account or remove it completely if there is a good reason to (i.e. your income has reduced), it is a standard practice to ask you to pay 50% of your current year’s tax bill by the same 31 January towards the bill for next year. Another 50% is expected by 31 July. Again if these are not paid on time, interest will be applied to your account.
When your tax bill is calculated for the following year, these payments are taken into account and a ‘balancing figure’ is calculated. Then the payments on account are again calculated for the following year.