Paying PAYE doesn’t need to be stressful or complicated – with the right systems in place, it becomes a simple monthly routine that protects your cash flow and keeps HMRC off your back.
– Nigel Holland, Principal, Holland & Co Chartered Accountants
How to Pay PAYE to HMRC
Paying PAYE correctly and on time is essential to avoid penalties and interest. This page walks you through what PAYE is, when it must be paid, and the easiest ways to pay HMRC.
1. What is PAYE?
PAYE (Pay As You Earn) is the system HMRC uses to collect:
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Income tax from employees’ wages
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Employee National Insurance
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Employer’s National Insurance
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Student loan deductions and (where applicable) other deductions
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As an employer, you report these figures to HMRC via your payroll software / RTI (Full Payment Submission and Employer Payment Summary), then pay the total due over to HMRC.
2. When you must pay PAYE
In most cases, PAYE is due monthly.
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If you pay electronically, HMRC must receive the money by the 22nd of the following tax month
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If you pay by post (cheque), HMRC must receive it by the 19th of the following tax month
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Some smaller employers can pay quarterly instead of monthly. Even then, the same deadlines apply: 19th (cheque) or 22nd (electronic) after the end of the quarter.
If the deadline falls on a weekend or bank holiday, HMRC must receive cleared funds by the last working day before that date.
3. Information you need before you pay
Before making a payment, make sure you have:
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Your PAYE Accounts Office reference (13 characters)
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The amount due for the period
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The tax month or quarter you are paying (for example: Month 1 = 6 April–5 May)
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Always double-check the figures against your payroll reports and HMRC online account.
4. Ways to pay PAYE
You have several options to pay PAYE. Electronic bank transfer is usually fastest and safest.
4.1 Direct Debit via your HMRC online account
You can set up a Direct Debit through your HMRC employer online account:
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Sign in to your HMRC employer account
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Select “PAYE for employers”
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Choose “Set up a Direct Debit”
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Confirm the amount and payment date
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You can either create a one-off payment or (in some cases) set up a recurring Direct Debit. This method helps reduce the risk of missing deadlines.
4.2 Bank transfer (Faster Payments, CHAPS or Bacs)
You can pay directly from your bank using:
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Faster Payments
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CHAPS
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Bacs
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Use the HMRC PAYE bank details shown in your online account or on gov.uk, and quote your 13-character Accounts Office reference as the payment reference.
Faster Payments and CHAPS usually arrive the same or next working day. Bacs typically takes three working days, so allow enough time.
4.3 Online or telephone banking
Most business banking apps and online banking platforms will let you set up HMRC as a payee.
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Select “Pay a business or organisation” (wording may vary)
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Search for “HMRC PAYE” or use the bank details from gov.uk
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Enter your Accounts Office reference (exactly, with no spaces)
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Confirm the amount and send the payment
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Keep a record or screenshot of the payment confirmation for your files.
4.4 Debit or corporate credit card
You can pay PAYE by debit card or corporate credit card through the HMRC online card payment service.
You will be asked for:
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Your Accounts Office reference
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Card details
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The amount you wish to pay
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Note: HMRC no longer accepts individual personal credit cards for most tax payments.
4.5 At your bank (with a payslip)
Some businesses can still pay at their bank branch using an HMRC PAYE payslip.
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Take your PAYE payslip and cheque to the bank
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Make the cheque payable to “HM Revenue & Customs only” followed by your Accounts Office reference
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This method is slower and less common now; electronic payments are strongly recommended.
5. Using your Accounts Office reference correctly
Your Accounts Office reference is crucial. If it is wrong or incomplete, HMRC may not allocate your payment correctly, which can lead to unnecessary letters and apparent arrears.
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Use the exact 13 characters shown by HMRC (no spaces)
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Do not use your PAYE employer reference (the one that looks like 123/AB456) as the payment reference
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If paying via your HMRC online account, follow the instructions exactly – the system will generate the correct reference format for the period you are paying
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If you are unsure which reference to use, check your HMRC online account before sending money.
6. What happens if you pay PAYE late?
If your PAYE payment is late, HMRC may charge:
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Late payment penalties (depending on how many times you are late in a tax year)
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Interest on the outstanding amount
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Repeated late payments can also trigger compliance checks and create additional admin. It is always better to contact HMRC or your adviser early if you know you are going to struggle to pay on time.
7. Good habits to stay on top of PAYE
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Run your payroll on a regular schedule each month
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Check the PAYE due figure against your reports and HMRC online account
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Set up calendar reminders a few days before the 19th/22nd
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Consider using Direct Debit to reduce the risk of missing the deadline
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Keep clear records of all payroll reports and payments made
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Staying organised will help you avoid penalties and keep cash flow predictable.
8. Need help setting up or paying PAYE?
If you would like help:
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Registering as an employer
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Setting up payroll software and RTI submissions
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Understanding how much PAYE and National Insurance you should be paying
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Resolving PAYE arrears or HMRC letters
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you can get in touch and we will guide you through the process step by step and make sure payments are correctly calculated and made on time.
