Instructions for making income tax payments to HMRC
As you need to make additional payments of tax, you should arrange to settle the amount due by the dates given in our covering letter. Interest will be charged on payments received by HM Revenue & Customs (HMRC) after the due date.
In order to make a payment you will require your 10 digit Unique Taxpayer Reference Number (UTR) and National Insurance Number (NINO) which are shown on Page TR1 of your Tax Return.
Cheques should be in sterling and made payable to “HM Revenue & Customs Only”. You should write your 10 digit UTR after “HM Revenue & Customs only”. In addition, you should write your NINO on the back of the cheque.
We recommend you allow at least 3 working days for the payment to reach HMRC.
Please note that you should not fold the cheque or payslip and do not fasten them with paper clips or staples or in any other manner.
Self-Assessment Statement of Account available
Detach the payslip from the Self-Assessment Statement of Account and send it with your cheque to the following address:
Accounts Office Shipley
HM Revenue & Customs
Self-Assessment Statement of Account not available
If you have not received a Self-Assessment Statement of Account please submit the cheque to the address quoted above along with the following details:
- Your name, address and Telephone Number
- Your Reference (UTR and/or NINO)
- The Type of Tax you are paying – Self Assessment Tax
- Credit and Debit Card over the Internet or Telephone
To use this payment service you will need:
- Your Debit/Credit card as the service will ask for details shown on your card
- Your 10 digit UTR
- details of the account you are paying (Minimum £0.01; maximum £99,999.99
Enter HMRC’s website via: www.gov.uk/pay-tax-debit-credit-card to use the internet payment service known as BillPay, which should be available 24 hours a day, 7 days a week.
You do not need to register to use this service although the BillPay website recommends that you do so if you intend to make regular payments or view your payment history. If you need assistance with payment please refer to the help section within the BillPay website.
For payments processed successfully, HMRC will treat your payment as having been made on the day you used the BillPay Service. However, the money will normally leave your account two working days after you make the transaction.
The BillPay service will authorise your payment on-line at the time you make payment. Exceptionally, if a payment is not authorised a message will be displayed telling you your payment has been declined and you will need to arrange an alternative payment method.
If you have a debit card, you can call HMRC on 0300 200 3402 between 8:00 AM and 8:00 PM to speak to an operator who will take your details and provide you with a reference once the payment is processed.
For payments processed successfully, HMRC will treat your payment as having been made on the day you called them. However, the money will normally leave your account two working days after you make the transaction.
If your bank offers internet or telephone banking you will need to provide the system with you 10 digit UTR Followed by a “k” for example 1234567890K and the bank details in which to transfer the payment.
Accounting & Payment Service
Accounts office Cumbernauld
08 32 10
Accounts Office Shipley
08 32 10
If you have a Self Assessment statement of account available to you, this will indicate which accounts office payment should be made to. (please refer to the bottom left hand corner of the Self Assessment statement of account or on the reverse of the statement). However if the statement is not available you should send payment to accounts office Cumbernauld.
It takes on average 3 working days for the payment to reach HMRC but some banks may take longer so you should check prior to making the payment.
Faster Payments Online
HM Revenue & Customs (HMRC) are now able to accept payments made using the faster payments service. The Faster Payment Service (FPS) is a service that has been introduced by the banking industry for sending payments initiated by internet/telephone banking and standing order. The beneficiary receives the payment on the same or next day, provided that the value of the payment does not exceed the limit set by the bank sending the payment.
In order of a payment to be sent using FPS both the sending and receiving banks must be participating members of the scheme.
You should contact your bank or building society before making payment to confirm:
- The services available to you
- Whether there are any single transaction or daily limits on the amount you can pay
- Their latest cut off time for making a payment
When making a payment to HMRC please make sure you always use the correct bank account details and reference number. This will ensure that your payment is received, and will help you avoid incurring a penalty, interest or surcharge for late payment.
Penalties and Interest for Late Filing and Late Payment Of Tax
Please note that returns which are e-filed must be submitted to HMRC (via PwC) by 31 January 2016. For returns filed late, the following penalty regime applies.
- Day One: initial late filing penalty of £100, even if you have no tax to pay or you have already paid all the tax you owe.
- Three Months Late: An automatic daily penalty of £10 per day, up to a maximum of £900.
- Six Months Late: Imposition of further penalties, which are the greater of 5 per cent of tax due or £300.
- Twelve Months Late: Further penalties, which are the greater of 5 per cent of tax due or £300. In serious cases you face a higher penalty of up to 100 per cent of the tax due.
For any late paid tax, the following penalty regime applies:
- Thirty Days Late: Automatic 5% surcharge of the tax unpaid at that date.
- Six Months Late: Further 5% surcharge of the tax that is still unpaid.
- Twelve Months Late: Further 5% Surcharge of the tax that is still unpaid.
In addition interest on the unpaid tax and penalties runs until your return is filed and /or the outstanding tax is paid
We expect HMRC to process the return as we have prepared it, and to accept the tax position calculated. However, HMRC has the right to audit the return after it has been processed (and HMRC needs to give no reason for this). For returns filed by 31 January 2016, HMRC normally has until 12 months after the return is filled to enquire into 2014/2015 returns, although this period may be as long as 15 months if the return is filed after that date. A small minority of returns is subjected to enquiry at random, whilst others are selected according to risk factors identified by HMRC tax specialists. In some cases enquiries may be extremely detailed. If HMRC decides to audit your return, it will first send you a statutory notice and should send a copy to us. If HMRC eventually succeeds in challenging any of the figures in the return, this may affect the tax payable/repayable.
Retention of Records
There are legal requirements regarding how long you must retain the records to support the entries in your Tax Return (the period varies depending on the nature of the records). However, in certain circumstances, HMRC has the power to raise additional assessments after these periods have ended, and in the case of your 2014/15 return this could happen as late as 31 January 2021. Therefore, please, ensure that you keep all of the records relating to the 2014/15 return until that date. After that date, HM Revenue & Customs cannot reopen your affairs in the absence of fraudulent or negligent conduct .
Records may include information that you have prepared as well as documents that you have received from others.