How to Pay Your Self Assessment Tax Bill: Every Payment Method

The Accounted Business Team·30 January 2026·7 min read

You have filed your Self Assessment return and now you know what you owe. The next step is actually paying the bill. HMRC offers several payment methods, and the one you choose matters — some are instant, some take days, and picking the wrong one near the deadline could mean your payment arrives late.

Here is every way you can pay, how long each one takes, and which ones to avoid if you are cutting it close.

Before You Pay: What You Need

Whichever method you choose, you will need your Unique Taxpayer Reference (UTR). This is a 10-digit number that identifies you with HMRC. You can find it on:

Previous tax returns
Statements of account from HMRC
Letters from HMRC about your Self Assessment
Your HMRC online account

You may also need your National Insurance number for some payment methods. Have both ready before you start.

Payment Method 1: Online or Telephone Banking (Fastest)

This is the quickest and easiest way to pay. You make a bank transfer directly to HMRC using your online banking or telephone banking service.

HMRC's bank details:

Sort code: 08 32 10
Account number: 12001039
Account name: HMRC Cumbernauld

Payment reference: Use your 10-digit UTR followed by the letter K. For example, if your UTR is 1234567890, your reference is 1234567890K. Getting the reference right is important — without it, HMRC cannot allocate your payment to your account.

Processing time: Same day or next working day. If you pay before about 3pm on a working day, it usually arrives the same day. Weekends and bank holidays do not count as working days.

Best for: Getting your payment in quickly, especially close to the deadline. This is the method we recommend for most people.

Payment Method 2: Debit Card Online

You can pay by debit card through HMRC's online payment portal at gov.uk. Go to "Pay your Self Assessment tax bill" and follow the steps.

Processing time: Same day. The payment is usually processed immediately.

Important: HMRC stopped accepting personal credit cards for tax payments in January 2018. You can use a debit card (Visa, Mastercard, or Maestro) but not a personal credit card. Corporate credit cards are still accepted, but for most sole traders, this does not apply.

Best for: People who want to pay instantly without setting up a bank transfer.

Payment Method 3: Direct Debit

You can set up a direct debit to pay your Self Assessment bill through your HMRC online account. You can choose to make a one-off payment or set up an ongoing arrangement.

Setting it up: Log in to your HMRC online account, go to your Self Assessment, and select the option to set up a direct debit. You will need your bank details (sort code and account number).

Processing time: 3 working days. The direct debit takes time to process, so you need to set it up at least 3 working days before the payment deadline.

Best for: People who want to "set and forget" but are organised enough to do it well before the deadline. Not suitable for last-minute payments.

Payment Method 4: Budget Payment Plan

HMRC lets you make regular weekly or monthly payments towards your next tax bill throughout the year. This is not a payment plan for a bill you cannot afford — it is a voluntary arrangement to spread the cost and avoid a large lump sum in January.

How it works: Set up a regular payment through your HMRC online account. You can choose how much to pay and how often. The payments build up as a credit on your account, and when your tax bill is calculated, the credit is applied against it.

Processing time: Varies depending on the payment method you choose for each instalment.

Best for: People who struggle to save for their tax bill. Instead of trying to set aside money each month (and being tempted to spend it), you pay it directly to HMRC throughout the year. When January comes, you owe nothing — or at least much less.

Payment Method 5: CHAPS (Clearing House Automated Payment System)

CHAPS is a same-day bank transfer system for high-value payments. It works like a normal bank transfer but is guaranteed to arrive the same working day.

Details: Use the same bank details as a regular bank transfer (sort code 08 32 10, account number 12001039), but select CHAPS as the transfer type in your online banking.

Processing time: Same day (guaranteed, unlike regular Faster Payments which are "usually" same day).

Cost: Many banks charge for CHAPS payments — typically £20–£30. Check with your bank.

Best for: Large tax bills where you want certainty that the payment will arrive on the same day. Not worth the fee for smaller bills when Faster Payments works just as well.

Payment Method 6: At Your Bank or Building Society

You can pay in person at your bank or building society using a paying-in slip from HMRC.

How to get a paying-in slip: HMRC may send you one with your statement of account. If you do not have one, you can print a paying-in slip from your HMRC online account or call HMRC to request one.

Processing time: 3 working days. The bank needs time to process the payment and send it to HMRC.

Best for: People who prefer face-to-face transactions. However, with many bank branches closing, this option is becoming less practical. You also need the paying-in slip in advance, which requires some planning.

Other Payment Methods: Post Office and Cheque

You can also pay at a Post Office using a paying-in slip (3 working days processing), or send a cheque by post to HMRC, Direct, BX5 5BD (allow 5+ working days). Both are slower options best avoided near the deadline.

Processing Times Summary

| Payment Method | Processing Time | Deadline Day? | |---------------|----------------|---------------| | Online banking (Faster Payments) | Same day / next working day | Yes | | Debit card online | Same day | Yes | | CHAPS | Same day (guaranteed) | Yes | | Direct debit | 3 working days | No — set up early | | Bank or building society | 3 working days | No | | Post Office / Cheque | 3–5+ working days | No |

What If You Cannot Pay?

If you cannot afford to pay your full tax bill by the deadline, do not ignore it. HMRC offers Time to Pay arrangements that let you spread the cost over up to 12 months.

Setting Up a Payment Plan Online

You can set up a Time to Pay plan online if:

You owe £30,000 or less
You are within 60 days of the payment deadline
You do not have any other HMRC payment plans or debts
You have filed your latest tax return

Go to gov.uk and search for "Set up a Self Assessment payment plan." You can choose how many months to spread the payments over (up to 12 months) and see the interest that will be added.

Calling HMRC

If you owe more than £30,000 or do not meet the criteria for the online service, call the Payment Support Service on 0300 200 3835. Be prepared to explain your financial situation and what you can realistically afford to pay each month.

HMRC would rather work with you than chase you. They deal with thousands of people who cannot pay on time, and they have a process for it. The worst thing you can do is ignore the bill.

Tips for Paying Your Tax Bill

Pay Early, Even If You File Early

Filing your return early does not mean you have to pay early — the payment deadline is still 31 January. But if you have the money, paying early has benefits: no risk of missing the deadline, no stress, and HMRC actually gives you credit interest (albeit at a very low rate) if you overpay.

Save Throughout the Year

The best way to avoid January panic is to set aside money for tax throughout the year. A good rule of thumb is to save 25–30% of your profits in a separate savings account.

Accounted makes this easier by showing you a real-time estimate of your tax bill. Penny updates the figure as your income and expenses change, so you always know roughly how much to set aside. No more guessing, no more January shocks.

Check Your Statement of Account

After you pay, check your HMRC online account to confirm the payment has been allocated correctly. If you used the wrong reference, the payment might sit in an unallocated account while HMRC sends you letters about non-payment.

Stay on top of your tax throughout the year with Accounted. Penny calculates your estimated tax bill in real time, so you know exactly how much to save each month. Start your free trial and make tax payment day boring — in a good way.

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