How Do I Pay My Tax Bill Once I Have Submitted My Return

Introduction

If you are self employed or have income that is not taxed at source, you must complete a Self Assessment tax return and pay any tax owed directly to HMRC. Your bill may include:

Income Tax on your earnings.

Class 2 and Class 4 National Insurance contributions.

Payments on account (advance tax for the next year, if applicable).

HMRC provides several payment methods, allowing you to choose the one that best suits your circumstances.

When your tax payment is due

For most people, the Self Assessment payment deadline is 31 January each year.

This date covers:

Any tax you still owe for the previous tax year (known as the balancing payment).

The first payment on account for the current tax year, if your bill is over £1,000 and less than 80 percent of your tax is collected through PAYE.

The second payment on account is due by 31 July.

Example

If your 2023 24 tax return shows £6,000 of tax due, you pay:

£6,000 (balancing payment) by 31 January 2025.

£3,000 (first payment on account for 2024 25) by 31 January 2025.

£3,000 (second payment on account) by 31 July 2025.

How to find out how much to pay

Once your return is submitted, HMRC will calculate your tax bill automatically if you filed online. You can see the amount owed by logging into your HMRC online account and selecting “View your Self Assessment return” or “View your statement.”

If you filed a paper return, HMRC will send you a bill (known as a Self Assessment statement) by post.

Always double-check the figure and keep a copy of your calculation for your records.

Payment options

HMRC accepts several methods of payment. Choose one that ensures the funds reach them by the deadline, as late payments incur interest and penalties.

1. Online or telephone banking (Faster Payments)

You can pay your tax bill using online or mobile banking. Use HMRC’s bank details:

Account name: HMRC Cumbernauld or HMRC Shipley
Sort code: 08-32-10
Account number: 12001039 (Cumbernauld) or 12001020 (Shipley)

Include your 11-character payment reference, which is your Unique Taxpayer Reference (UTR) followed by the letter K.

Payments made via Faster Payments usually reach HMRC the same day or the next working day.

2. Debit or corporate credit card

You can pay your tax bill online at GOV.UK using a debit or corporate credit card. Be aware that HMRC does not accept personal credit cards.

Payments made this way are usually processed within three working days.

3. Direct debit

You can set up a direct debit through your HMRC online account. This is useful if you make regular Self Assessment payments.

The first direct debit setup may take up to five working days, so plan ahead. Once established, future payments usually clear within three working days.

4. CHAPS or Bacs transfer

You can also pay by CHAPS or Bacs transfer from your business bank account.

CHAPS payments typically arrive the same day if made before your bank’s cut-off time.

Bacs payments take up to three working days.

5. At your bank or building society

If you receive a paper statement with a payslip, you can pay in person at your bank or building society. Payment must be made by the deadline, and you will need to use the payslip provided.

6. By cheque through the post

You can send a cheque payable to HM Revenue and Customs only to HMRC, accompanied by your payslip.

Cheques must reach HMRC by the deadline, not just be posted before it, so allow at least a week for postal delays.

Address for payments:
HMRC
Direct
BX5 5BD

Write your UTR followed by K on the back of the cheque.

Setting up a payment plan

If you cannot pay your tax bill in full by the deadline, HMRC may allow you to spread the cost. You can apply online for a Time to Pay arrangement if you:

Owe less than £30,000.

Have no other tax debts.

Are up to date with tax returns.

Can pay the amount within 12 months.

To set up a plan, log in to your HMRC account, view your Self Assessment bill, and choose “Set up a payment plan.”

If you owe more than £30,000 or need longer to pay, contact HMRC’s payment support service to discuss your situation.

What happens if you pay late

If you miss the 31 January deadline, HMRC will:

Charge interest on the outstanding amount from 1 February.

Add a 5 percent late payment penalty if the bill remains unpaid after 30 days, 6 months, and 12 months.

For example, if you owe £5,000 and miss all three deadlines, penalties could total £750, plus ongoing interest.

Paying even part of the amount owed can reduce further charges, so it is better to make a partial payment than none at all.

Record keeping

Once you have paid, keep proof of payment such as:

Online banking confirmation.

A payment receipt or reference from HMRC.

Copies of correspondence if you arranged a payment plan.

HMRC can request evidence of payment during future reviews or investigations, so retain these records for at least five years after the tax year end.

Example scenario

Amir is a self employed web designer. After submitting his 2023 24 tax return, his online account shows £4,200 due by 31 January 2025. He pays using Faster Payments from his bank on 30 January, and the payment reaches HMRC the same day.

Amir keeps a copy of his payment confirmation for his records. By paying on time, he avoids interest and penalties, ensuring a clean record with HMRC.

Common mistakes to avoid

Paying after the deadline because you did not allow time for processing.

Using the wrong payment reference and having the payment misallocated.

Forgetting about payments on account and underpaying.

Not setting up a direct debit early enough for it to clear.

Checking deadlines and confirming your payment details before submitting can help you avoid unnecessary penalties.

Conclusion

Once you have submitted your Self Assessment tax return, you can pay your bill online, by bank transfer, or through other approved methods. The key is to pay the correct amount by 31 January to avoid fines and interest.

If you cannot pay in full, contact HMRC early to set up a payment plan. Keeping records and checking your account regularly ensures your tax affairs remain accurate and stress free.

With a little planning and awareness of deadlines, paying your tax bill after submitting your return can be straightforward and hassle free.