How to Pay Self Assessment Tax

If you’re new to self employment, or if you need to complete a self assessment for the first time you might have questions about the process from HMRC.

There are plenty of ways to pay self assessment tax - you’ll need your UTR Number, but once you’ve found that you can pay your tax bill online or in person pretty easily.

Paying on time is important to avoid extra costs and penalties - and so you can generate a SA 302 statement of earnings, which is needed for things like accessing a business loan or mortgage.

Join us as we walk through how to pay self assessment tax - including making your payments from a Wise Business account.

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When does self assessment tax have to be paid?

You’ll need to pay self assessment tax by the UK government deadline to avoid penalties and interest fees. If you file a late return up to 3 months after the deadline, the penalty is £100 plus accrued interest¹.

The penalty can increase for late payment, and for filing more than 3 months after the deadline. There’s a tool on the UK government website to calculate the late payment penalty you may need to pay². To avoid this, make sure you pay self assessment online or by post by the deadlines:

• 31st January for your balancing payment covering any tax owed from the previous year
• 31st January for the first payment on account
• 31st July for the second payment on account

Ways to pay self assessment tax

Wondering how to pay self assessment tax online? The good news is that you can pay self assessment by debit card or get the details needed for paying self assessment by Bacs, CHAPs and similar digital methods.

Alternatively you can pay by cheque, although bear in mind that this takes longer. You can also pay in person at a bank or building society. Let’s walk through the ways to pay self assessment tax online and by post, one by one so you can pick the right one for you.

Bank details to pay self assessment

You can pay your self assessment tax conveniently from your bank³. You’ll also be able to pay self assessment tax through a Wise Business account, which can be handy if you use Wise to take low cost international payments for your company.

To pay with your bank you just need to:

• Head to the UK Government and HMRC website.
• Click 'Pay self assessment now'.
• And you’ll be able to select 'pay by bank account' as an option.
• You’ll be directed to your bank’s online login page and asked to approve a payment to HMRC.
• Your payment can go through instantly or take up to 2 hours.

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Paying self assessment by Bacs

You can also choose to pay self assessment through CHAPS, Bacs and Faster Payments⁴. The process for all 3 payment types is the same, but check if your own bank charges different fees for these services as that may make one a more attractive option for you. Bacs payments can take 3 days to arrive, while CHAPS and Faster Payments should arrive on the same day.

Your self assessment tax bill will give you the bank account details you’ll need to pay into. If you do not have a bill, or you’re not sure, you can pay into either:

• Sort code - 08 32 10
• Account number - 12001039
• Account name - HMRC Cumbernauld

OR

• Sort code - 08 32 10
• Account number - 12001020
• Account name - HMRC Shipley

If you’re paying from an account which is overseas, you’ll have to pay into one of the following accounts:

• Bank Identifier Code (BIC) - BARCGB22
• Account number (IBAN) - GB62BARC20114770297690
• Account name - HMRC Cumbernauld

OR

• Bank Identifier Code (BIC) - BARCGB22
• Account number (IBAN) - GB03BARC20114783977692
• Account name - HMRC Shipley

Pay self assessment by debit card

You’ll be able to pay self assessment tax through debit or corporate card and it’ll be processed either on the same day or the following day depending on the time you initiate it⁵.

You’ll need to:

• Go to the UK Government and HMRC website.
• Click 'Start your Self Assessment payment'.
• Select 'pay by card'.
• Payments can only be made from corporate cards or personal debit cards - personal credit cards aren’t accepted.
• Bear in mind you need your UTR as a reference - use this 10 digit number, followed by K to generate your payment reference.

Paying self assessment by Direct Debit

If you want to pay self assessment tax through direct debit⁶ you can do so - but bear in mind it’ll take 5 working days to set up a new direct debit, or 3 days if you’ve previously used this payment method.

You can set up weekly or monthly direct debits as part of a budgeting plan, or you can make an annual payment if you’d prefer. You’ll need to find your UTR and use this, followed by the letter K as the reference you use when you create your direct debit with your bank or building society.

Pay self assessment by cheque through the post

Finally, you’ll have the option to pay self assessment tax through the post by sending a cheque⁷. Make your cheque payable to ‘HM Revenue and Customs only’.

The mailing address you need is:

Direct
BX5 5BD

You do not need to include a street name, city name or PO box with this address, and you’ll need to allow 3 working days for your payment to reach HMRC.

FAQs - how to pay your self-assessment tax

Can I pay my self-assessment tax in installments?

Yes, if you can't pay your self-assessment tax in full, you can set up a Time to Pay Arrangement with HMRC, which lets you pay in installments. Contact HMRC as soon as possible to discuss your options.

What happens if I miss the payment deadline?

If you miss the deadline for payment you can face interest and penalties, starting at £100 for late submissions and increasing depending on how overdue your payment is.

What reference number should I use when making a payment?

Use your Unique Taxpayer Reference (UTR) followed by the letter ‘K’. Ensure this is correct to avoid payment delays.

How can I check if HMRC has received my payment?

You can check your payment status by logging into your HMRC online account. Payments typically show within 3 working days.

Pay self assessment taxes through Wise Business account

While you’re thinking about the most efficient ways to organise your business finances, check out Wise Business for smart multi-currency account options which allow you to pay and get paid globally.

You’ll be able to hold a balance in 40+ currencies, send payments to 160+ countries, and get local bank details to receive payments yourself in a selection of foreign currencies, using low cost transfer methods.

That makes it easier for customers from around the world to pay you - and you can also use your local bank details to get paid through PSPs like Stripe and marketplaces like Amazon.

Once you have a balance in a foreign currency you can hold it in your Wise Business account to make payments later, withdraw it to another bank account, or convert it to the currency of your choice with the mid-market exchange rate and low fees from 0.43%.

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Use this guide to figure out the most convenient way to pay your self assessment tax - and remember to take a look at Wise Business as well, as a simple and straightforward way to pay and get paid internationally.

Sources used in this article:

Sources last checked on December 30, 2024