There are four methods for paying a tax bill
We recommend making payments by bank transfer as this is the best way to prove that the amount was paid and was paid on that date!
Method 1 – Internet Banking
If HMRC sent you a payslip it will state whether you need to pay Shipley or Cumbernauld.
If you have no payslip then the default position is to make personal tax payments to Shipley and company tax payments to Cumbernauld. There are a lot of cases which do not follow this pattern, but don’t worry about it. HMRC sometimes moves cases around to even out the workload.
Depending on your bank, they may already have HMRC Shipley or HMRC Cumbernauld set up on their system. If the bank does not have the precise account details already, then you will need to specify one of these two:
account name HMRC Shipley
sort code 08-32-10
account no. 12001020
ref – your unique taxpayer reference number (the UTR)
account name HMRC Cumbernauld
sort code 08-32-10
account no. 12001039
ref – your unique taxpayer reference number (the UTR)
These bank accounts do not work with the modern “faster payments” system which we are all now used to. It normally takes at least 24 hours for a payment to arrive. Do not pay on the last possible date, it will not arrive until the next banking day and that will make your payment late!
If it’s a personal tax payment add a capital letter K to the end of your 10 digit UTR.
12345 67890 K
If it’s a company tax payment, the 10 digit UTR needs to be followed by the “accounting period”. Please try to follow this format as HMRC is prone to getting payments, putting them in the wrong place, and then claiming that they didn’t receive it in the first place! Replace the letters NN here with the numbers which we provide in our email.
12345 67890 A001 NN A
If your tax liability is more than £10,000 you may find that you will exceed your bank’s limit on internet transfers. Two smaller amounts paid on two separate days should enable you to work around that problem.
Method 2 – Traditional Cheque and Payslip
Companies are compelled to pay corporation tax electronically with effect from 1 April 2011. You can still use cheques to pay personal taxes.
If you have a recent reminder, payslip and prepaid envelope, please use that when making your payment. Write out a cheque for “H M Revenue & Customs” and put your unique taxpayer reference number on the front and on the back! Post it in good time so that it arrives by the due date! Thanks.
Method 3 – Debit Card
Use a debit card and pay by phone. Call the Collector of Taxes on 0845 305 1000 and quote your 10 digit unique taxpayer reference number. Then ask for a payment reference number or authorisation code for this payment.
Method 4 – Covering Letter and Cheque
Companies are compelled to pay corporation tax electronically with effect from 1 April 2011. You can still use cheques to pay other taxes.
If you cannot use any of the above methods, please use the dialogue below as the basis for a covering letter (using your normal business letter headed paper) and send it with a cheque, to the Collector. Write out a cheque for “H M Revenue & Customs” and put your unique taxpayer reference number on the front and on the back!
| The Collector of Taxes Accounts Office B Shipley W Yorkshire BD98 8AADear SirsI enclose a cheque in the sum of AMOUNT which represents tax due on DATE for the period ended YEAREND, under your ref REFNO. Yours faithfully |