Sending large amounts to anyone can leave you feeling a little anxious, especially when you’re paying your tax bill to HMRC. Don’t worry though, there are ways you can check your payment has been received, which we’ll discuss in this article.
Who needs to register and pay tax with HMRC?
You pay tax on things like the money you earn through employment, profits you make if you’re self-employed, as well as various other forms of income like money you receive through your pension.
If you’re employed, you won’t have to register and pay tax directly to HMRC – it’ll be taken out of your pay automatically through PAYE. But you may need to register and complete a Self Assessment tax return if you receive income that isn’t taxed at source. For example, from rental income, or any trading income.
How do I register to pay tax with HMRC?
It depends on your business structure. Sole traders will register for Self Assessment once they’ve earned over the £1,000 trading allowance. A limited company director will register the company with Companies House and pay tax through a Company Tax Return, but they may also need to register for Self Assessment to report income they get personally – for instance because they pay themselves dividends from the business.
The rules also differ if you’re in a general partnership or if you’re in a limited liability partnership (LLP).
How do I pay my tax bill?
HMRC will work out how much tax you owe once you submit your tax return. The good news is there are lots of options when it comes to paying your bill. The method you use affects how long it takes for the payment to reach HMRC:
- Direct debit
- Bacs
- Via a cheque through the post
- Through your online bank account
- Online
- Telephone banking
- By CHAPS
- In-branch at your bank
- With your debit card online
Can I pay my tax bill in instalments?
If you can’t pay your tax bill in full, you need to contact HMRC straight away. They may be able to set up a payment plan for you – which is also known as a ‘Time to Pay’ arrangement.
Can I check whether my tax payment to HMRC has been received?
Yes, there are a few things you can do to check whether HMRC has received your payment.
Allow time for the payment to be processed
It’s understandable you want confirmation your payment has gone through straight away – but some payment methods take time. Our table below shows typical timeframes depending on your payment method.
| Ways you can pay | Average time it takes to reach HMRC |
|
Online banking Via telephone banking At your local bank or building society By CHAPS |
Same or next day |
|
Direct debit if you’ve alread set one up with HMRC Post with a cheque BACS |
Three working days |
| Direct debit if it’s your first time setting one up | Five working days |
Check your HMRC online account
You can sign into your HMRC online account to check if your payment has been received. Any online payments you’ve made within the last 7 days will be in the ‘Your balance’ section. Other payments, for example if you’ve paid by cheque, may take a little longer to appear.
Once your payment has been processed it’ll then be shown in the ‘View payments and credits’ section of your online account – allow 7 days for this to come through. If 7 days have come and gone, and you can’t see this, contact your bank to ensure the payment has been sent.
Contact HMRC directly
If you still can’t see your tax payment, you can contact HMRC directly. They have options to reach them via post, phone, or online via their chat system – you just need to choose the option relevant to your query.
Check your bank statements
When checking your bank statements you need to ensure:
- The payment left your account
- The reference number was correct – because an incorrect reference number could be the reason for the delay
Learn more about our online accounting services for businesses. Call 020 3355 4047 to chat to the team, and get an instant online quote.
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