How to pay HMRC

There are many ways you can pay HM Revenue and Customs (HMRC). Ensure your payment reach HMRC on time to avoid interest on late payment.

Universally, you have to pay HMRC for your self-assessment tax, income tax, stamp duty, corporation tax, Value Added Tax (VAT), pay as you earn (PAYE), national insurance contributions (NIC) and late filing penalty.

How to pay HMRC using the following payment methods.

By debit card or credit card

Go to

Telephone or Internet banking

You may contact your own bank and provide the banker with the HMRC bank details:

  • Tax amount due
  • Sort code: 08-32-10
  • Account number 12001020
  • Account name: HMRC

Remember to provide the reference as shown on the HMRC payslip, for example, if you are paying for corporation tax please provide the 10 digits unique tax reference numbers. This allows HMRC to allocate the payment to your accounts.

Direct Debit

Go to to setup a direct debit payment. You must register for HMRC online services before you can setup direct debit payment. Register for HMRC online services are quick and easy and secure.

For example, you may like to setup direct debit if your business is registered for VAT so that HMRC can automatically take the VAT payment due or refund VAT every quarter from/to your business accounts based on the VAT return you submitted. Your accountants can set this up for you.

Post office

Take the HMRC payment slip to any participating Post Office. You may pay by debit card or by cheque. If paying by cheque, please make your cheque payable to Post Office LTD.

Pay by Cheque

If you would like to pay by cheque, please make your cheque payable to HM REVENUE & CUSTOMS ONLY and remember to include your payslip.

Please ensure you affix a correct stamp on your envelop.

VAT flat rate

VAT flat rate scheme set a fixed percentage to be applied when calculating your VAT payable to HM Revenue and Customs.

Your company may opt for the VAT flat rate scheme if your annual sales are up to £150,000. Under this scheme, the business is not required to keep records on input tax on every purchase transaction. This may save a considerable amount of time on VAT administration. However, businesses still need to keep records of their gross purchases and expenses for corporation tax purposes or income tax purposes.

No record for input tax

Your company charge a standard rate of VAT on sales as usual. The difference of this scheme to that of the standard VAT scheme is that your company does not need to account for input tax on expenses. Your company simply pays a percentage of VAT on sales including all reduced, zero-rated and exempt sales to HM Revenue and Customs.

VAT accounting records

It is highly recommended for your company to keep your accounting records the same way as you would if you are under the Standard VAT scheme. This would enable you to monitor and compare if your company is paying more VAT under the VAT flat rate scheme to HMRC. If your company is persistently paying extra VAT, consider opting back to the VAT standard rate scheme.

Your company must leave the flat rate scheme when its sales exceeded £150,000.

Calculate VAT payable under the VAT flat rate scheme

You multiply your sales inclusive of VAT charged to your customers with the VAT flat rate applicable to your business.

For example, you provide IT consulting services. Your VAT flat rate is 14.5%. Let’s say, your income from your consulting business is £10,000 and you charge 20% VAT on top. Your total income inclusive VAT is £12,000. The VAT payable to HMRC would be £1,740.

The VAT rates for businesses approved under the flat rate scheme vary and it is dependent on the business sector you are in.

VAT flat rate percentage by business sector

Type of businessCurrent VAT flat rate
Accountancy or bookkeeping14.5%
Agricultural services11%
Any other services not listed elsewhere12%
Architect, civil and structural engineer or surveyor14.5%
Boarding or care of animals12%
Business services that are not listed elsewhere12%
Catering services including restaurants and takeaways12.5%
Computer and IT consultancy or data processing14.5%
Computer repair services10.5%
Entertainment or journalism12.5%
Estate agency or property management services12%
Farming or agricultural that is not listed elsewhere6.5%
Film, radio, television or video production13%
Financial services13.5%
Forestry or fishing10.5%
General building or construction services*9.5%
Hairdressing or other beauty treatment services13%
Hiring or renting goods9.5%
Hotel or accommodation10.5%
Investigation or security12%
Labour only building or construction services*14.5%
Laundry or dry cleaning services12%
Lawyer or legal services14.5%
Library, archive, museum or other cultural activity9.5%
Management consultancy14%
Manufacturing fabricated metal products10.5%
Manufacturing food9%
Manufacturing not listed elsewhere 9.5%
Manufacturing yarn, textiles or clothing9%
Membership organization8%
Mining or quarrying10%
Post offices5%
Real estate activity not listed elsewhere14%
Repairing personal or household goods10%
Repairing vehicles8.5%
Retailing food, confectionery, tobacco, newspapers or children’s clothing4%
Retailing pharmaceuticals, medical goods, cosmetics or toiletries8%
Retailing that is not listed elsewhere7.5%
Retailing vehicles or fuel6.5%
Secretarial services13%
Social work11%
Sport or recreation8.5%
Transport or storage, including couriers, freight, removals and taxis10%
Travel agency10.5%
Veterinary medicine11%
Wholesaling agricultural products8%
Wholesaling food7.5%
Wholesaling that is not listed elsewhere8.5%

*Labour only building or construction services means building or construction services where the materials costs supplied is less than 10% of relevant turnover from such services. If more than this amount, your business is classed as general building or construction services.

Companies House filings

In addition, choosing the right VAT scheme and submit VAT returns to HMRC, you must deliver company accounts and confirmation statement to Companies House.

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