How to Pay HMRC: Key Dates, Deadlines & Tips for Business Owners

Running a business in the UK means keeping on top of your obligations to HMRC. Whether it's paying your staff, submitting VAT returns, or filing your own Self Assessment, getting it wrong can lead to penalties and cash flow problems.

In this guide, we'll walk you through how to pay HMRC correctly, the key deadlines you need to know for PAYE (Payroll), CIS, VAT, Self Assessment, and common mistakes business owners make plus how to avoid them.

1. PAYE (Payroll)

What is PAYE?

Pay As You Earn (PAYE) is HMRC's system for collecting Income Tax and National Insurance from employees’ wages.

Key Deadlines:

• RTI Submission: On or before each payday.

• Payment to HMRC:

  • By 22nd of the following tax month if paying electronically.

  • By 19th if paying by post or using a non-electronic method.

    
    

How to Pay:

• Through your HMRC online account (using your Accounts Office reference).

• By bank transfer, Direct Debit, or debit/credit card.

  
  

Common Issues & How to Avoid Them:

• Late submissions: Automate payroll and set reminders.

• Incorrect reference numbers: Double-check your Accounts Office reference each time.

• Missing payment deadlines: Set up calendar alerts and consider using Direct Debit.

  
  

2. Construction Industry Scheme (CIS)

What is CIS?

If you work in construction and pay subcontractors, you must deduct money from their payments and pass it to HMRC.

Key Deadlines:

• CIS Return: Submit by the 19th of each month for the previous tax month.

• Payment to HMRC:

  • Same deadline as PAYE - 22nd of each month electronically, or 19th by post.

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How to Pay:

• Via HMRC online services using your PAYE reference (CIS payments are made together with PAYE/NIC).

  
  

Common Issues & How to Avoid Them:

• Confusion over who qualifies as a subcontractor. Check HMRC’s guidance or seek advice.

• Late submissions and payments. Combine CIS and PAYE tasks in your calendar.

  
  

3. VAT

What is VAT?

If your VAT taxable turnover is over £90,000 (2024/25 threshold), you must register for VAT and submit returns, usually quarterly.

Key Deadlines:

• VAT Return Submission & Payment:

  • Due 1 month and 7 days after the end of your VAT period.

  • E.g., if your VAT quarter ends 31 March, your return and payment are due by 7 May.

    
    

How to Pay:

• Online banking, Direct Debit, debit/credit card, or using accounting software integrated with Making Tax Digital (MTD).

  
  

Common Issues & How to Avoid Them:

• Missing deadlines. Sign up for email reminders from HMRC or use MTD-compliant software.

• Inaccurate returns. Use digital recordkeeping tools like Xero or QuickBooks.

• Cash flow struggles. Consider the VAT Annual Accounting Scheme or VAT Cash Accounting to ease payment timing.

  
  

4. Self Assessment

What is Self Assessment?

This is how individuals (including company directors and sole traders) report income to HMRC and calculate tax owed.

Key Deadlines:

• Paper Return Deadline: 31 October (after the tax year ends).

• Online Return Deadline: 31 January.

• Payment Deadlines:

  • 31 January: Final balancing payment and first payment on account.

  • 31 July: Second payment on account (if applicable).

    
    

How to Pay:

• Bank transfer, online banking, Direct Debit, or via your personal tax account.

  
  

Common Issues & How to Avoid Them:

• Forgetting payments on account. Check your tax calculation summary.

• Filing late. Get your records in order early and submit well before the deadline.

• Unexpected tax bills. Set aside money regularly or open a separate tax savings account.

  
  

5. General Payment Tips for All Taxes

• Always use the correct reference number. Each tax has its own reference.

• Keep proof of payment. Especially important if a payment is delayed.

• Use a calendar or accounting software. Many tools can remind you of key dates.

• Check your online HMRC account regularly. Stay on top of balances and due dates.

• Work with an accountant. They can help you stay compliant, avoid penalties, and manage cash flow efficiently.

  
  

Final Thoughts

Staying on top of your HMRC obligations is critical to running a smooth and successful business. The key is to know your deadlines, stay organised, and pay on time using the correct references.

If you find managing taxes overwhelming, consider working with a trusted accountant. At Strength in Numbers, we help business owners stay compliant and in control of their finances, so you can focus on what you do best: growing your business.

Need help managing your business taxes?

📞 Contact us at www.strengthinnumbers.co.uk

📩 Or book a free consultation today!