PAYE payment dates

The PAYE tax month

The PAYE tax month runs from the 6th of one month to the 5th of the next. So "Month 1" is 6 April to 5 May, "Month 2" is 6 May to 5 June, and so on.

PAYE for each tax month covers the income tax and National Insurance you've deducted from employees, plus employer National Insurance, on payments made during that month.

Monthly payment deadlines

• Electronic payment (Faster Payments, BACS, Direct Debit): due by the 22nd of the month following the tax month
• Postal cheque: due by the 19th of the month — and the cheque must clear by the 22nd

Example: PAYE for tax month 1 (6 April to 5 May) is due by 22 May (electronic) or 19 May (postal).

Quarterly payment option

If your average monthly PAYE liability is under £1,500, you can pay quarterly instead of monthly. The quarterly tax months end on 5 July, 5 October, 5 January, and 5 April. Payment is due by the 22nd of the following month (electronic).

You don't need HMRC's permission — just start paying quarterly. But you still need to send an FPS each pay run, even if you're paying quarterly.

Bank holiday adjustments

If the 22nd falls on a weekend or bank holiday, payment must arrive by the previous working day. Electronic payments arrive instantly via Faster Payments — but BACS takes three working days, so plan accordingly.

What happens if you pay late

• First default in a tax year: warning letter, no penalty
• From the second default: 1% penalty rising to 4% based on number of defaults
• If still unpaid 6 months after the deadline: another 5% penalty
• Plus daily interest from the day after the deadline

Reference number

Use your 13-character Accounts Office reference as the payment reference. The format is three numbers, "P" or "PB", and ten more characters. Wrong reference = HMRC can't match the payment, which can trigger penalty letters even if you paid on time.