How to Pay your Personal Tax Liability?

Pay Personal Tax

There are several ways in which you can pay personal tax liabilities. We go though each option on how to pay personal tax, so that you can decide which option is most convenient for you.

Recap: Who needs to pay personal tax

UK individuals who are registered for self-assessment must pay their personal tax liabilities in January and July each year.

The due date for both payments is the 31st, so if you have a July payment on account to make it must be paid by 31st July.

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

What you need to pay personal tax

To 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.

Pay personal tax by card

In our opinion, the most convenient way to pay personal tax is using a debit card online. N.b As of the 13th January 2018 you can no longer pay personal tax using a personal credit card. All debit cards and company credit cards are still accepted.

Simply select this link to go to the HMRC website.

Enter your UTR. You do not need to enter the K on the HMRC website as they do this automatically.

Enter the amount you wish to pay, select continue and then enter your card details.

Pay personal tax by electronic banking

Login in to your online banking and make a payment as follows:

Account Number: 12001039

Sort Code: 08-32-10

Payment Reference: This is your UTR followed by a capital K. e.g 1234567890K

Pay personal tax at your bank

Pay by cash or cheque at any of your banks branches. You can only use 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

Pay 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.

Send the cheque to the following address:

HM Revenue & Customs
Direct
BX5 5BD

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

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