How to Pay Your HMRC Tax Bill in 2026 — All Payment Methods Explained
You can pay your HMRC tax bill by bank transfer, BACS, CHAPS, debit card online, or cheque. Direct Debit and credit cards are no longer accepted for most tax payments. Here's how each method works and how to get the payment reference right.
HMRC bank account details
Before choosing your payment method, you need HMRC's bank account details. For Self Assessment, the details are:
| Account name | HMRC Cumbernauld |
|---|---|
| Sort code | 08-32-10 |
| Account number | 12001039 |
| Reference | Your 10-digit UTR followed by K |
For other tax types (Corporation Tax, VAT, PAYE), HMRC uses different accounts. Always confirm the correct details at gov.uk as they can change.
Method 1: Faster Payments (online bank transfer)
Best for: most taxpayers paying under £100,000.
Faster Payments is the standard online bank transfer using UK banking infrastructure. You initiate it from your personal or business online banking.
- Speed: Usually arrives same day, often within 2 hours. Some banks process overnight.
- Cost: Free
- Limit: Typically £100,000 per transaction (bank-dependent — some banks allow more)
- When to use: Any time up to and including the deadline day
How to make the payment
- Log in to your online banking
- Set up HMRC as a new payee using the sort code and account number above
- Enter your UTR followed by K as the payment reference (e.g. 1234567890K)
- Enter the exact amount
- Confirm and send
Keep the payment confirmation (screenshot or email) as proof of payment.
Method 2: BACS (Bankers Automated Clearing Services)
Best for: planned payments made well in advance of the deadline.
BACS is the system used for regular transfers between UK banks, typically taking 3 working days.
- Speed: 3 working days
- Cost: Free
- Limit: No standard limit
- When to use: At least 3 working days before the deadline
BACS is commonly used by businesses for payroll and bulk payments. For most individual taxpayers, Faster Payments is quicker and there is no benefit to using BACS unless your bank requires it for certain transaction sizes.
Method 3: CHAPS (Clearing House Automated Payment System)
Best for: same-day payments above £100,000 or where you need guaranteed same-day clearance.
CHAPS is the UK's high-value same-day payment system. It is used for large transactions such as property purchases.
- Speed: Same day if sent before your bank's CHAPS cutoff (typically 3pm-4pm)
- Cost: Typically £20-30 per transfer (varies by bank)
- Limit: No upper limit
- When to use: Large tax bills on or close to the deadline
For most individuals with typical Self Assessment bills, CHAPS is unnecessary. But if your bill is, say, £200,000 from capital gains or a large dividend, CHAPS ensures same-day clearance on deadline day.
Method 4: Debit card via HMRC's online portal
Best for: those without online banking, or who prefer a card payment interface.
You can pay via the HMRC portal at gov.uk/pay-self-assessment-tax-bill using a UK debit card.
- Speed: Typically 3 working days to clear (despite being a card payment — it is processed as a bank transfer)
- Cost: Free since July 2018 (HMRC absorbed the processing fee)
- Limit: Dependent on your bank's daily debit card limit (typically £10,000-£25,000 per day)
- Credit cards: NOT accepted — personal credit cards were banned in January 2018
Important caveat on timing
Even though it feels instant (you enter your card details and get a confirmation), the payment to HMRC takes up to 3 working days to clear. If your Self Assessment deadline is 31 January, pay by debit card no later than 28 January (accounting for weekends).
HMRC's portal will show the payment pending in your HMRC account while it clears.
Method 5: Direct Debit
Best for: taxpayers who want to automate payments on account.
HMRC offers a Direct Debit option for Self Assessment. You can set up a variable Direct Debit via your HMRC online account.
- Setup time: Must be set up at least 3 working days before the payment date
- Cost: Free
- Flexibility: You set the amount; it is not automatic — you must log in and confirm the amount each time
Important: this is not a standing order that pays automatically. You must actively initiate each payment via your HMRC account. The Direct Debit simply means the money is pulled from your bank account rather than you pushing it via bank transfer.
You cannot set up a Direct Debit on the day of the deadline.
Method 6: Cheque
Best for: those without online banking access or as a last resort.
Send a cheque made payable to HM Revenue and Customs only — no ampersand or abbreviation.
Write your UTR followed by K on the reverse of the cheque.
Send to:
HMRC, Direct, BX5 5BD
- Speed: Allow 5 working days minimum (Royal Mail + processing time)
- Cost: Postage only
- Risk: Lost in post — send by first-class signed-for delivery if near a deadline
- Deadline: Post at least 5 working days before the due date
In practice, most accountants and advisers recommend avoiding cheques for tax payments entirely. The risk of delay or loss is not worth it when Faster Payments is free and instant.
What about the HMRC app and Budget Payment Plans?
HMRC app
The HMRC app (available on iOS and Android) allows you to view your Self Assessment bill but does not itself process payments — it redirects you to the payment portal. Useful for checking what you owe.
Budget Payment Plan
HMRC offers a Budget Payment Plan for Self Assessment taxpayers. This allows you to make weekly or monthly voluntary payments throughout the year, building up credit towards your next bill. You set the amount and frequency.
The advantage: you spread the cost of your tax bill throughout the year rather than facing a large lump sum in January. The money sits with HMRC and is offset against your next bill.
Set it up through your HMRC online account under the Self Assessment section.
Getting the payment reference right
Using the wrong payment reference is one of the most common causes of HMRC payment allocation problems.
| Tax type | Payment reference format |
|---|---|
| Self Assessment | 10-digit UTR + K (e.g. 1234567890K) |
| Corporation Tax | 17-character Accounts Office reference |
| VAT | 9-digit VAT registration number |
| PAYE/Employers NI | 13-character Accounts Office reference |
| Self Assessment surcharge | UTR + K + penalty code (check your notice) |
If you receive a payment notice from HMRC, use the reference printed on that notice — it may include additional codes for specific charges.
If you cannot pay: Time to Pay
If you genuinely cannot pay your tax bill by the deadline, do not ignore it. Contact HMRC proactively:
- Online (up to £30,000): Use the Self-Serve Time to Pay service in your HMRC online account
- By phone: Call the Self Assessment Payment Helpline on 0300 200 3822
A Time to Pay arrangement lets you pay in monthly instalments. Interest continues to accrue throughout, but it prevents the 5% late payment penalty as long as you keep up the instalments.
Be honest about your financial position. HMRC is generally willing to agree reasonable arrangements, especially for first-time issues.
Related calculators
Use the income tax calculator to work out your exact Self Assessment liability before making payment.
The take-home pay calculator helps you plan your monthly budget to set aside enough for your January and July tax payments throughout the year.
Frequently asked questions
What is the fastest way to pay HMRC in 2026?
Faster Payments via online banking is the fastest method for amounts under £100,000 — it typically arrives the same day or next working day. CHAPS is the same-day option for larger amounts, sent before your bank's daily cutoff time.
Can I pay my HMRC tax bill by credit card?
No. HMRC stopped accepting personal credit card payments in January 2018. You can pay by debit card, bank transfer (Faster Payments, BACS, CHAPS), or cheque. Corporate credit cards may still be accepted for some business taxes.
What payment reference should I use for Self Assessment?
Use your 10-digit Unique Taxpayer Reference (UTR) followed by the letter K. For example, if your UTR is 1234567890, your payment reference is 1234567890K. An incorrect reference can delay HMRC allocating your payment.
How long does a cheque payment to HMRC take?
Allow at least 3-5 working days for a cheque to reach and be processed by HMRC. Do not send a cheque within 3 working days of a deadline — it will arrive late and you will be charged interest. Post well in advance or use a faster payment method near deadlines.
Can I set up a Direct Debit to pay Self Assessment?
You can set up a Direct Debit via your HMRC online account to pay your Self Assessment bill or payments on account. It must be set up at least 3 working days before the payment deadline. However, you cannot set up a Direct Debit on the day of the deadline.
What happens if my payment does not reach HMRC by the deadline?
If your payment arrives late, HMRC charges late payment interest at Bank Rate plus 2.5% (approximately 7.0% in 2026) from the day after the deadline. After 30 days, a 5% late payment penalty also applies. Interest accrues continuously until the full payment is received.
Try the calculators
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