HMRC - Payments

Employed

If you’re employed, the vast majority of the time you’ll end up paying your tax before you receive your income. Most employers operate a “Pay As You Earn” scheme (PAYE). With these schemes, the employer deducts income tax and class 1 national insurance contributions before sending your salary to you. 

If you believe there has been a problem with your payments (for example, if you believe you’re on the wrong tax code and are being charged an incorrect amount), you should contact HMRC as soon as possible.

Self-employed

If you’re self-employed, you’ll have to make a payment through self-assessment. The deadlines for paying your self-assessment tax bill are 31 January for any tax you owe for the previous tax year and your first payment on account, and 31 July for your second payment on account.

If you miss a deadline, you’ll be charged interest and will be charged a penalty fee.

You can pay your income tax by:

Same or next day – online or telephone banking, CHAPS, debit or corporate credit card, or at your bank or building society with a paying-in slip from HMRC.

3 working days – BACs, direct debit (if you’ve set one up beforehand), by cheque through the post

5 working days – Direct Debit (if you’ve not set one up beforehand)

• You should always try and resolve any problems with HMRC by talking with the person who has been dealing with you first.
• If this is impossible or has not resolved your issue, you should use Resolver to contact them.
• HMRC operates a tiered complaints system. Complaints will go through two tiers of service.
• If you are still unhappy, you can ask your MP to escalate your complaint to the Parliamentary and Health Ombudsman.

If you believe HMRC has not correctly followed procedure, it's always worthwhile to consider contacting them via Resolver. HMRC may offer compensation for any distress, delay, damage caused, or costs incurred by HMRC (such as the cost of having to hire an accountant).

It's worth knowing that HMRC have the right to take enforcement action to reclaim any debts (under certain conditions).

You should be aware, however, that HMRC field agents have no right of seizure. They might take note of the things you have (your assets), but they can't take any on the spot.

HMRC can level penalties for late payment. It's always worth contacting HMRC if you believe you might have been incorrectly penalised (or if serious circumstances stopped you from paying on time). HMRC will often consider any reasons you might have for late payment.

You should try and correct any mistakes with your tax as soon as possible.

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