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Paying a PAYE Settlement Agreement

Tax and Class 1B National Insurance due from PAYE Settlement Agreements needs to be paid no later than the 22nd of October following the tax year for which they apply.

Information in this help guide explains how to pay a PAYE Settlement Agreement (PSA), the different payment methods available, reference numbers, and relevant bank details.

5 Ways to Pay PAYE Settlement Agreement

You can sign in to your tax account online to make a PAYE Settlement Agreement payment.

But, you must pay PSA by the deadline to avoid penalties and interest for making a late payment.

It is important to allow enough time for your payment to reach HM Revenue and Customs (HMRC). For example:

  • Payments made online or by telephone banking (e.g. using Faster Payments), by CHAPS, or by debit or corporate credit card usually arrive the same day (or the following day).
  • You should allow at least three (3) days for Bacs payment (Bankers’ Automated Clearing System), Direct Debit, or a cheque to clear.
  • It could take five (5) working days for Direct Debit to clear if you have not already set it up with HMRC.

You cannot pay a PAYE Settlement Agreement at the Post Office any longer. Also, you need to pay by the 19th of October if you will be paying by postal methods.

What if the deadline date falls on a weekend or one of the bank holidays in the United Kingdom (e.g. Easter or New Year’s Day)?

In this case, you should ensure your payment reaches HM Revenue and Customs no later than the last working day before it (unless paying by Faster Payments).

Note: The bank details for paying a PAYE Settlement Agreement (PSA) are also available in Welsh language (Cymraeg) via the GOV.UK website.

Online or Telephone Banking, Bacs, CHAPS

You can use these bank details to pay HM Revenue and Customs (HMRC) by Faster Payments, Bacs, or CHAPS.

Sort Code: 08 32 10
Account Number: 12001020
Account Name: HMRC Shipley

It is important to use your PAYE Settlement Agreement reference number as the payment reference. You can find the PSA number on your payslip sent by HMRC and it begins with the letter ‘X’.

Furthermore, it is worth checking the transaction limits and processing times for the bank that you use before making a PSA payment. But, in most cases:

  • Making a payment by Faster Payments (e.g. online or telephone banking) would usually reach HM Revenue and Customs on the same or next day (includes bank holidays and weekends).
  • PSA payments made by CHAPS within the processing times of your bank should reach HMRC on the same working day.
  • Payments made by Bacs (previously called Bankers’ Automated Clearing System) will take at least three (3) working days.

Important: Using the wrong reference (e.g. your PAYE Accounts Office reference number instead) is likely to result in a delayed payment.

Making Overseas Payments

You will need to use these details if you want to pay your PAYE Settlement Agreement (PSA) from an overseas bank account.

Account Number (IBAN): GB03BARC20114783977692
Bank Identifier Code (BIC): BARCGB22
Account Name: HMRC Shipley

HMRC Banking Address
Barclays Bank PLC
1 Churchill Place
London
United Kingdom
E14 5HP

Debit or Corporate Credit Card (online)

You will encounter a non refundable fee if you choose to pay online using a debit or corporate credit card. But, it cannot be a personal credit card.

It is important to use your PAYE Settlement Agreement reference number as the payment reference. You should contact the HMRC office dealing with your application if you do not have your PSA number.

HMRC will accept this type of PSA payment method on the actual date if paid in full (including bank holidays and weekends). So, you do not have to wait for it to reach their account to clear.

Paying at Bank or Building Society Branches

You must use the PAYE Settlement Agreement (PSA) payslip to pay at your bank or building society branch by cash or cheque (made payable to ‘HM Revenue and Customs only’).

HMRC accept this PSA payment type on the date paid (Monday to Friday). So, you do not have to wait for it to reach their account to clear.

Paying by Direct Debit

You can use your HMRC online business account to make a single payment using Direct Debit. Remember to use your PAYE Settlement Agreement reference number as the payment reference.

It takes around five (5) working days to process a Direct Debit (the first time) and then around three (3) working days thereafter (if using the same bank details).

Note: You should make a separate Direct Debit payment for your PAYE Settlement Agreement if you use Direct Debit to pay PAYE or Class 1 National Insurance contributions.

Sending Cheques by Post

You must use the correct address and allow at least three (3) days if you want to send a cheque by post to pay HM Revenue and Customs for a PAYE Settlement Agreement (street name, city name, PO box not required).

HMRC
Direct
BX5 5BD

Make the cheque payable to ‘HM Revenue and Customs only’ and write your PAYE Settlement Agreement (PSA) reference number on the reverse side. Remember to include your payslip (unfolded) and do not use staples to fasten them together.

Failing to fill in the correct information on the cheque can delay the payment. You should include a separate note to request a receipt.

Note: You can print your own PAYE Settlement Agreement (PSA) payment slip when paying by post (not at a bank).

Check if HMRC Received Your PSA Payment

There are several ways to check if your payment has been received. For example, your bank or building society statement will confirm whether the payment has left your account – or not. You can also ask for a receipt from HMRC if you pay by postal methods.

Note: The master section contains more information and guidance about PAYE Settlement Agreements and how to change the items covered under PSAs.

How to Pay a PAYE Settlement Agreement (PSA)