Mandatory Electronic Payment

From income tax year 2004/05, large employers must pay their in-year PAYE tax, National Insurance contributions (NIC), Construction Industry Scheme (CIS) and Student Loan (SL) deductions, electronically in full and on time.

Where the employer fails to comply with this legislation HMRC can impose a surcharge.

Electronic Payments

Electronic payment means making monthly payments of PAYE, National Insurance Contributions, Construction Industry Scheme and Student Loan deductions by one of a number of approved electronic methods. All electronic payments from the Income Tax year 2004/05 onwards can be made by the later date of the 22nd of the month.

Large employers (250 or more employees) must arrange to make payment in sufficient time to ensure that HMRC receives cleared funds in our bank account by 22nd. Funds must clear by the previous bank working day where the 22nd falls on a weekend or is a bank holiday. If payment reaches HMRC on the first bank working day after, it will be classed as a late payment.

This later payment date of 22nd also applies to payments made by medium-sized, small or exempt employers who choose to pay electronically. Medium-sized, small or exempt employers who pay by cheque still have a due date of 19th of each month.

A guide to payment dates

The table below provides guidance to help you decide when to initiate your monthly payments. It tells you the

  • date by which HMRC must receive cleared funds
  • last day for initiating a payment.

The table is only a guide. Your bank or building society may take longer to process the payment and both will operate a cut-off time for initiating a payment that day. This is information you need to find out from your bank or building society.

 

22nd falls on a

We must have cleared funds by

Last day for initiating payment by

 

 

Telephone, Internet, BACS Direct Credit, Bank Giro and Alliance & Leicester Commercial Bank

CHAPS (also Paymaster if you have this facility)

Monday

Monday 22nd

Thursday 18th

Monday 22nd

Tuesday

Tuesday 22nd

Friday 18th

Tuesday 22nd

Wednesday

Wednesday 22nd

Monday 20th

Wednesday 22nd

Thursday

Thursday 22nd

Tuesday 20th

Thursday 22nd

Friday

Friday 22nd

Wednesday 20th

Friday 22nd

Saturday

Friday 21st

Wednesday 19th

Friday 21st

Sunday

Friday 20th

Wednesday 18th

Friday 20th

Paying Electronically

The following electronic payment methods are acceptable:

  • BACS Direct Credit
  • your bank or building society Internet or Telephone Banking Service
  • BillPay (debit card over the Internet)
  • CHAPS
  • Paymaster

Employers who receive a payslip booklet can also pay by

  • Bank Giro
  • Alliance Leicester Commercial Bank (previously know as Girobank)

Find out about methods of paying HMRC