How do I pay PAYE?

You must pay your PAYE bill to HM Revenue and Customs (HMRC) by:

• the 22nd of the next tax month if you pay monthly

• the 22nd after the end of the quarter if you pay quarterly - for example, 22 July for the 6 April to 5 July quarter

If you pay by cheque through the post, the deadline is the 19th of the month.

How to know how much to pay

Payroll needs to be calculated, so you know how much to pay. That is usually done via software and often done by using an accountant. 

You can run payroll yourself via HMRC's Basic PAYE Tools. However, for complex payroll, you might require some more complicated software and/or additional support.  

What you’re paying

Your PAYE bill may include:

• employee Income Tax deductions

• Class 1 and 1B National Insurance

• Class 1A National Insurance on termination awards and sporting testimonials

• Student Loan repayments

• Construction Industry Scheme (CIS) deductions

• your Apprenticeship Levy payments (starting from April 2017) if you, or employers you’re connected to, have an annual pay bill of more than £3 million

You pay your Class 1A National Insurance on work benefits that you give to your employees separately.

PAYE Settlement Agreements are also paid separately.

Ways to pay

Make sure you pay HMRC by the deadline. You may have to pay interest and penalties if your payment is late.

The time you need to allow depends on how you pay.

You can no longer pay at the Post Office.

Same or next day

• online or telephone banking (Faster Payments)

• CHAPS

• through your online bank account

Three working days

• by debit or corporate credit card online

• Bacs

• at your bank or building society (cash or cheque)

• Direct Debit (if you’ve already set one up)

• by cheque through the post

Five working days

• Direct Debit (if you have not set up one before)

If the deadline falls on a weekend or bank holiday, make sure your payment reaches HMRC on the last working day before it (unless you’re paying by Faster Payments).

Payment booklets

You’ll need a payment booklet from HMRC to pay at your bank or building society or by post. If you do not have one, ask HMRC to send it to you.

If you’re no longer using your payment booklet, you can ask HMRC to stop sending it.

HMRC will automatically stop sending your payment booklet if you make two or more electronic payments in a year.

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