When sending large sums of money to HMRC, many taxpayers only feel at ease once they confirm their payment has cleared. The good news is that checking whether HMRC has received your payment is simple.
Who Needs to Pay Tax to HMRC?
Not everyone needs to pay HMRC directly. If you are an employee and your employer pays you using PAYE, they will be automatically deducting Income Tax and National Insurance Contributions.
However, you need to register with HMRC and make direct payments if you earn income not taxed at source. This includes:
- Profits from self-employment, even as a side business
- Rental income from letting out property or a room
- Dividends or share income not fully taxed at source
- Pension or savings income that exceeds the relevant allowances
If self-employed, you will complete a Self Assessment tax return every year. Sole traders must register once their earnings exceed the £1,000 Trading Allowance. Limited company directors may also need to complete a Self Assessment if they receive untaxed income, such as dividends.
However, General Partnerships and Limited Liability Partnerships (LLPs) follow their own registration and filing rules.
How to Pay Your Tax Bill
Once HMRC processed your tax return, they confirm how much you owe. You can then pay using one of the following methods:
- Online or telephone banking
- CHAPS transfer
- In-branch payment at a bank or building society
- Online debit card payment
- BACS transfer
- Cheque by post
- Direct Debit
Each method has a different processing time, and payments do not always appear instantly in your HMRC online account:
Same or Next Day
- Online banking
- Telephone banking
- CHAPS
- In-branch payments
Three Working Days
- BACS
- Cheques
- Existing Direct Debits
Five Working Days
- First-time direct debit
If you are paying close to a deadline, choose a quicker method and allow for processing time to avoid late-payment interest.
Checking If HMRC Has Received Your Payment
1. Sign In to Your HMRC Online Account
Log into your HMRC Online Account to track your payments. Recent electronic or online payments appear in the “Your balance” section, usually within seven days. After processing, payments move to “View payments and credits”. Some payment types may take the full seven days to display.
2. Monitor Your Bank Statement
Check that the payment has left your account and that you entered the correct payment reference number. A wrong reference number can delay processing or send your payment to the wrong account.
3. Wait for the Processing Window
If you use a slower method, allow the recommended rime before worrying.
4. Contact Your Bank or HMRC
If your payment does not appear after seven days, first confirm with your bank that the payment went through. If everything looks correct, contact HMRC via phone, online chat or by post. Have your payment details and reference number ready to speed up to process.
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This article is for general informational purposes only and does not constitute legal or financial advice. While we aim to keep our content up to date and accurate, UK tax laws and regulations are subject to change. Please speak to an accountant or tax professional for advice tailored to your individual circumstances. Pi Accountancy accepts no responsibility for any issues arising from reliance on the information provided.