As the tax bill deadline of the 31st January rolls around, many are rushing to get their tax paid ahead of time. Once you have had an accountant work out your tax (or you have worked it out yourself) many clients are left wondering the best way to pay their income tax bill. Luckily this is easy enough and there are a few different options you can choose from.

Remember that you may pay a penalty and interest if your payment is late, so it is a good idea to get it paid and sorted well ahead of time.

There are different options for paying your tax:

1.  Use the gov.uk portal to pay with a debit or credit card.

https://www.gov.uk/pay-self-assessment-tax-bill

You need your Unique Tax Reference number (it is the 10-digit number on top right hand corner of page 1 of your Tax return).

Note that you cannot pay using a personal credit card.

If you pay using a company debit card or company credit card there is a small no refundable fee to pay.

2. Pay by bank transfer

There are 2 HMRC bank accounts you can transfer to. 

Sort code Account number Account name

08 32 10 12001039 HMRC Cumbernauld

08 32 10 12001020 HMRC Shipley

If you have previously paid into the Shipley account, then use the Shipley account

Otherwise use the Cumbernauld account.  You need to enter your Unique Taxpayer Reference as a reference when you pay. This makes it easier for HMRC to track your payment.

3. Pay by cheque

If you don’t want to pay via an electronic method, you can also pay your tax bill by cheque. This must be paid out to “Her Majesty’s Revenue & Customs Only” followed by your unique tax reference (UTR). You will need to pair it with a special pay-in-slip that you can print off online. It is important you leave enough time for it to arrive as the deadline is counted as when it is received, not when it is sent. Be sure you also get proof of postage.

4. Pay HMRC by direct debit

Another way to pay, and often cited the easiest way, is via a pre-set up direct debit. This can be set up to come out of your account on or before the deadlines in January and July. You can set this up through your HMRC online account and will need your UTR on hand. The first time you add a direct debit, be prepared this will take five working days to process. After this, if you use the same bank details it should take three working days.

Remember to pay your income tax on time to avoid a penalty and/or interest added to your total.