Paying PAYE and NI to HMRC

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Your PAYE/NI liability for the month should be paid electronically by 22nd of the following month.  For example the PAYE/NI on September’s pay run should be reach the revenue by 22nd October.

To find your liability in Xero, go to the “Payroll menu”, and select “Taxes & Filings”.  This will give you a list of the PAYE/NI liabilities by month.  Note the amount payable for the month in question:

In this example the amount due for September is £588.18.

To find your liability in FreeAgent, go to the “Taxes” menu, and select “PAYE & NI”.  This will give you a list of the PAYE/NI liabilities by month.  Note the amount shown in the “Balance Owed” column at the end of the month in question:

In this example at the end of April the amount due for payment is £1,620.

Please note that if you have more than one employee, the liability will be listed by employee, so ensure you pick up the cumulative amount due at the end of the list of all employees paid during that month.

To make payment to the revenue, the following bank details should be used:

For alternative ways to make a payment to HMRC, please visit:  https://www.gov.uk/pay-paye-tax/bank-details

When making the payment please ensure you quote your Accounts Office Reference as the payment reference.  This will ensure the revenue correctly allocate the payment against your account.  The accounts office reference is a 13 digit reference, and can be found on any HMRC correspondence regarding your payroll.

At Smart Accountancy Systems we send out monthly reminder emails to remind you of your payment liability and your accounts office reference, so this should make the process as simple as setting up the electronic payment.

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