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How to Pay Corporation Tax by Bank Transfer?

How to Pay Corporation Tax by Bank Transfer

You can pay HM Revenue and Customs (HMRC) by Faster Payments, CHAPS or Bacs.

Your ‘notice to deliver your tax return’ or any reminder from HMRC, will tell you which account to pay into. If you’re not sure, use HMRC Cumbernauld.

sort code: 08 32 10
account number: 12001039
account name – HMRC Cumbernauld

Or:

sort code: 08 32 10
account number: 12001020
account name – HMRC Shipley

Reference number

Use your 17-character Corporation Tax payment reference number for the accounting period you’re paying (we can provide this if needed).

Your payment reference number changes with each accounting period, so you’ll need to use a different one each time you pay.

If you’ve paid by bank transfer in the past and saved HMRC as a payee, your bank automatically saves the reference number you last used. You’ll need to update this with the correct reference number.

You’ll find your reference number:

on your ‘notice to deliver your tax return’ or on any reminders from HMRC
in your company’s HMRC online account – choose ‘view Corporation Tax statement’, ‘accounting periods’, then select the correct period
or just ask us to dig it out for you

Your payment may be delayed if you use the wrong reference number.

How long it takes

Payments made by Faster Payments (online or telephone banking) will usually reach HMRC on the same or next day, including weekends and bank holidays.

CHAPS payments usually reach HMRC the same working day if you pay within your bank’s processing times.

Bacs payments usually take 3 working days.

Check your bank’s transaction limits and processing times before making a payment.

‘Payments on Account’ explained

What are Payments on Account?

Sometimes, a taxpayer paying tax through self-assessment (as opposed to PAYE through your payslip) needs to make Payments on Account. I will describe who needs to do this in detail below.

Payments on Account are prepayments of next year’s tax based on your current year’s tax liability.

So, say for example we are calculating your 24-25 tax return, it is possible that at the same time as paying the 24-25 tax bill, you also need to make prepayments for the 25-26 year as well.

Who needs to make Payments on Account?

HMRC has published criteria clearly identifying who needs to make Payments on Account. POAs are made twice a year if:

Your tax bill through self-assessment is more than £1,000; AND
Less than 80% of your income tax is collected through PAYE (your payslip)

Both these conditions need to be satisfied to trigger payments on account.

How are Payments on Account Calculated?

The calculation is simple. You will make two payments on account for the next tax year based on your current tax liability. HMRC simply assumes that your tax due for next year will be the same as the current year. Your payments will be as follows:

1st Payment on Account made on 31st January. This will be 50% of the current year’s tax liability paid in advance for next year;
2nd Payment on Account made on 31st July. This will be the second 50% of the current year’s tax liability paid in advance for next year.

Do I have to make Payments on Account?

If the above criteria have been satisfied, you must make a payment on account. It is possible to apply to HMRC to reduce the payments, but only if your taxable income next year will be much lower than the current year.

For example, a taxpayer who has property rental income this year can apply to reduce their POAs if they sell the property during the next year. Next year’s income will not include property income, and so we would expect the tax to be lower.

Be careful: Don’t be tempted to cut your payments on account without good reason. If you end up earning more than you thought, resulting in an underpayment, HMRC can charge you penalties and interest. It is therefore good practice to leave your payments on account alone unless there is a very good reason to apply for a reduction – artificially reducing your POAs can be very counter-productive.

Does this mean I double pay my tax?

Absolutely not! If you’ve already made payments on account for a tax year, HMRC gives you credit for payments already made when calculating your 31st January ‘balancing payment’.

You therefore don’t double pay – you’re just prepaying the tax early.

How to Pay Class 1A National Insurance on Benefits in Kind?

Make an Online or Telephone Bank Transfer

You can pay by Faster Payments, CHAPS or Bacs to HM Revenue and Customs’ (HMRC) account.

Bank Details

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

Reference Number

You’ll need to give a 17-character number as the payment reference. This starts with your 13-character Accounts Office Reference number. Then add the tax year you want to pay for and the digits ‘13’ to make sure your payment is assigned correctly.

Tax year to reference suffix mapping:

Tax Year	Add these digits to your reference number
2021 to 2022	2213
2022 to 2023	2313
2023 to 2024	2413

Example: If your Accounts Office reference number is 123PA00012345, then to make a payment in July 2023 for the previous 2022 to 2023 tax year, add the digits 2313 to your reference number. Your full reference will be 123PA000123452313.

Where to Find Your Accounts Office Reference Number

The letter HMRC sent you when you first registered as an employer
The front of your payment booklet or the letter from HMRC that replaced it

Note: You must make a separate payment for Class 1A payments. You cannot add them to a standard PAYE payment.

How Long It Takes

Faster Payments (online or telephone banking): Usually reach HMRC on the same or next day, including weekends and bank holidays.
CHAPS payments: Usually reach HMRC the same working day if you pay within your bank’s processing times.
Bacs payments: Usually take 3 working days.

How to Pay Normal Monthly PAYE?

Make an Online or Telephone Bank Transfer

You can make a transfer to pay your PAYE from your bank account by Faster Payments, CHAPS or Bacs. The account details to use are as follows:

Bank Details

Sort Code	Account Number	Account Name
08 32 10	12001039	HMRC Cumbernauld

Reference Number to Use on the Payment

You’ll need to use your 13-character Accounts Office Reference Number as the payment reference, plus 4 additional digits as described below.

You can find your Accounts Office Reference:

In your HMRC online account
On the letter HMRC sent you when you registered as an employer
In the front of your payment booklet (if available)
Or call HMRC and they’ll provide it

How to Work Out the 4 Extra Digits

These digits depend on your payment frequency (monthly, quarterly, or annually). Here’s how:

Monthly Reference Mapping

Tax Year Month	Reference Number
6 April to 5 May	01
6 May to 5 June	02
6 June to 5 July	03
6 July to 5 August	04
6 August to 5 September	05
6 September to 5 October	06
6 October to 5 November	07
6 November to 5 December	08
6 December to 5 January	09
6 January to 5 February	10
6 February to 5 March	11
6 March to 5 April	12

Quarterly Reference Mapping

Tax Year Quarter	Reference Number
6 April to 5 July	03
6 July to 5 October	06
6 October to 5 January	09
6 January to 5 April	12

If You Pay Monthly

Add to your reference number:

The last 2 digits of the tax year
The number of the month (from the table above)

Example: For 6 May to 5 June 2022, the tax year ends in 2023 = 23 and the month is 02 → reference: 2302

If You Pay Quarterly

Add to your reference number:

The last 2 digits of the tax year
The number of the month that the quarter ends on (from the table above)

Example: For 6 July to 5 October 2022, the tax year ends in 2023 = 23 and the quarter ends in month 06 → reference: 2306

How Long It Takes

Faster Payments: Same or next day (including weekends and holidays)
CHAPS: Same working day (within bank processing hours)
Bacs: Usually takes 3 working days

Be sure to check your bank’s transaction limits and processing times before making a payment.

How to Pay Self-Assessment Income Tax?

Making an Online or Telephone Bank Transfer

You can pay your Self Assessment bill using Faster Payments, CHAPS or Bacs. This is usually the easiest and fastest way to pay HMRC.

Pay by Faster Payments, CHAPS or Bacs

Your tax bill will tell you which bank account to pay into. If you do not have a bill or are unsure, you can use either of the following HMRC bank accounts:

Sort Code	Account Number	Account Name
08 32 10	12001039	HMRC Cumbernauld
08 32 10	12001020	HMRC Shipley

What You’ll Need

You must use your 11-character payment reference when making a payment. This consists of:

Your 10-digit Unique Taxpayer Reference (UTR)
Followed by the letter ‘K’

Example: If your UTR is 1234567890, your payment reference will be 1234567890K.

You can find this in:

Your HMRC online account
Your paying-in slip, if you receive paper statements

Important: Using the wrong reference number may delay your payment or result in misallocation.

How Long It Takes

Faster Payments: Usually same day or next day (including weekends and bank holidays)
CHAPS: Usually same working day (if within your bank’s cut-off time)
Bacs: Usually takes 3 working days
International Payments: May take longer — confirm timelines with your bank

How to set up your Online Tax Account?

To help with this process, we have created an online PDF that takes you step by step through the registration process. Please click the link directly below to download our PDF.

How to Create a HMRC Personal Tax Account

How to Obtain your Tax Calculation (SA302)?

Background

If you are arranging a mortgage, it’s likely that your broker or bank will ask for a Tax Calculation (also called SA302) statement.

If we have prepared your tax return, we can supply your SA302 directly from our software — just let us know which years you need.

Important: If your previous tax returns were submitted using commercial software (rather than the HMRC website), you cannot access your SA302 online from the HMRC portal. In such cases, the SA302 must be obtained from the person or firm who prepared the return.

However, if you submitted your return via the HMRC website, you can access your SA302 online as described below.

To summarise:

If you submitted via the HMRC website, you can download the SA302 online.
If you used third-party software, contact the preparer to get your SA302.

How to Obtain Your SA302 Tax Calculation

If we did not prepare your tax return and you submitted it using the HMRC website, follow these steps to download your SA302:

Log in to your HMRC online account.
Click on ‘Tax Return Options’.
Select the relevant tax year from the dropdown and click ‘Go’.
Click on ‘View Return’.
From the left-hand menu, click on ‘View Calculation’.
Scroll to the bottom and click on ‘View and Print Your Calculation’.
Then click ‘Print Your Full Calculation’.

How to Obtain your Tax Overview Statement?

Background

If you’re applying for a mortgage, your broker or bank will likely ask you for a Tax Overview Statement. This is a specific document that can only be downloaded directly from HMRC’s online portal. Unfortunately, we cannot generate this document on your behalf.

How to Obtain Your Tax Overview

Follow the steps below to access and download your tax overview statement:

Log into your HMRC online account at online.hmrc.gov.uk.
Select ‘Self Assessment’ (if prompted). If you are only registered for Self Assessment, you’ll be taken directly to the right section.
Click on ‘View Account’.
Choose the appropriate tax year from the dropdown box.
Scroll down and click on ‘Print your tax year overview’.
Select ‘Save as PDF’.
Save the file to a folder on your device.

This is the document your broker or bank will need.

Need Help?

If you experience any issues or need assistance, feel free to contact us on 01707 830 500 or email bethany@julianhobbs.com.

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