How to Pay your Personal Tax Liability?

Pay Personal Tax

Estimated reading time: 5 minutes

The 5 simple ways you can pay your personal tax liability. We go though each payment option, so you can decide the most convenient.

Recap: Who needs to pay personal tax

UK individuals who are registered for self-assessment must pay their personal tax liabilities by 31st January each year.

A further payment maybe due by 31st July if you are required to make payments on account.

What happens if you don’t pay your tax? See our blog on Personal Tax Return Penalties.

How to pay your personal tax liability using your mobile phone?

In our opinion, the most convenient way to pay your personal tax liability is using the HMRC app on your mobile phone. This is the method we recommend if you have a personal tax liability due.

You will need to have the HMRC app and a banking app installed on your mobile phone. You will also need to have a personal tax account, so you can login to your HMRC account.

The video below provided by HMRC shows a demo of how the app works.

Other options available to pay your tax liability

There are 4 further options available to pay your personal tax liability. They are as follows:

  • Personal Debit Card
  • Electronic Banking
  • Visiting your Bank
  • Posting a Cheque

What you need to pay personal tax

To your pay personal tax you need 2 pieces of information:

  • Your unique tax reference (known as a UTR). It is 10 digits long and is often written as 2 blocks of 5, e.g 12345 67890. You will find this number on any self-assessment correspondence you have received from HMRC such as payslips, letters, etc. It will also be included on your personal tax return which you or your tax advisor prepared.
  • The amount of personal tax due. If you underpay, HMRC will charge interest and may even charge penalties.

Tip: When paying personal tax HMRC request the letter K (as a capital), is added to the UTR. Therefore your payment reference using the UTR above becomes 1234567890K. The K is not part of your UTR.

How to pay your personal tax by debit card?


To pay personal tax using a debit card online.

1. To pay by debit card, you will need to go to the HMRC webpage.
2. On the webpage, select pay online
3. Select no, to skip signing on the Government Gateway
4. Select debit card or corporate credit card
5. Enter your Unique Tax Reference (which is the 10 digit reference)
6. Now it will ask you to enter your personal and bank details

NOTE: Personal credit cards are no longer accepted by HMRC as a payment method.

How to pay your personal tax by electronic banking?


Log in to your online banking and make a payment transfer to the following bank account:

Account Name: HMRC Cumbernauld
Account Number: 12001039
Sort Code: 08-32-10
Payment Reference: Use your UTR followed by a capital K. e.g 1234567890K

To check these bank details on the HMRC website, view this HMRC webpage.

How to pay your personal tax at your bank?


Pay by cash or cheque at any of your banks branches. You can only pay your tax using this option if you have the payslip sent to you by HMRC.

Make cheques payable to HM Revenue and Customs only, followed by your UTR with a capital K.

For example: HM Revenue and Customs only 1234567890K

How to pay your personal tax by cheque through the post?


Make the cheques payable to HM Revenue and Customs only, followed by your UTR with a capital K. (See the above example for more information)

You will also need to include a payslip. If you don’t have a payslip a copy can be obtained – print a payslip

NOTE: This payslip can only be used for cheque purposes and can’t be used to pay at the bank.

Send the cheque and the payslip to the following address:

HMRC
Direct
BX5 5BD

To check this address with HMRC, view this HMRC webpage. You’ll then need to wait a few days for the cheque to be cashed.

After you’ve made the payment

Unfortunately things do go wrong and we do see payments incorrectly allocated by HMRC. Often this is just a glitch in their systems and is easily rectified.

Therefore to ensure the payment has been made. The first thing we recommend is to check the money has left your bank account.

If you have an HMRC online account you can check to see if the payment has been allocated correctly on there. You may need to wait a few days for the account to be updated.

If you don’t have a HMRC online account and you are one of our clients then contact us. As an agent we have the software and the authority to check your payment account on your behalf.

Tip: We recommend paying HMRC using a bank account in your personal name. Often clients will pay Limited company taxes using personal bank accounts and vice versa. We recommend you avoid doing this as it increases the likelihood of errors occurring.

DISCLAIMER – Please note that the content contained in this article is for general information only and is not a substitute for professional advice – read our full disclaimer