We know paying HMRC can feel a little overwhelming sometimes, having to rely on references and bank details to get your payment sent to the right place can be risky. So, we've created this little how-to guide to let you know exactly how and when to pay each type of tax you could come across, just to make your life that little bit easier!
Self Assessment
Balancing payments from your tax return are due by the 31st January each year, with a possible payment on account due on the 31st July each year, depending on the tax you have to pay. We will make it clear to you if you need to pay payments on account when we complete your tax return.
The reference you need to use is your UTR number, followed by the letter K. Your UTR number is a 10 digit tax reference number- this will be on your tax return, but feel free ask us if you're not sure!
The bank details needed for self assessment payments are linked here.
VAT
VAT payments are due by the 7th of the second month after your VAT return deadline, if you are on a quarterly VAT scheme. For example, if your VAT quarter was 01/01/24 - 31/03/24, the payment date would be 07/05/24.
However, if you sign up for direct debit with HMRC, they will automatically take the payment 3 working days after this payment deadline. In the above example, the payment would be taken on 10/05/24.
The reference number you need is just your VAT registration number, which should be present on all your sales invoices.
The bank details needed for VAT payments are linked here.
Corporation Tax
Payments for corporation tax are due 9 months and 1 day after your financial year ends. For example, if your financial year was 01/02/23 - 31/01/24, you would need to pay your corporation tax to HMRC before 01/11/24.
The reference needed for payment is a 17 character reference that changes for each financial year. This can be found on your HMRC online account, but feel free to ask us if you are not sure!
The bank details needed for Corporation Tax payments are linked here.
Capital Gains Tax
Capital Gains Tax will be reported and paid via your tax return (see 'self assessment' above), unless it is in relation to a residential property. This must be paid within 60 days of the property sale.
We will provide you with the 14 character capital gains payment reference number, as this is provided by HMRC when the return is submitted.
The bank details needed for payment are linked here.
Hopefully this will help you confidently make payments to HMRC in the future. Unfortunately though, sometimes you can do everything right and HMRC will still manage to 'lose' the payment. If this happens to you, don't worry- that's what we are here for! We can contact HMRC to get this sorted, saving you the time and stress so you can focus on your business.