PAYE quarterly payment option
Small employers can pay PAYE quarterly instead of monthly. Here's who qualifies and how to switch.
RR AccountantsLast updated: 2025-01-153 min read
Who qualifies
You can pay PAYE quarterly instead of monthly if your average monthly liability (income tax + employer NI + employee NI) is less than £1,500.
You don't need HMRC's permission — just switch to quarterly payments. But monitor your average monthly liability: if it rises above £1,500, you must switch back to monthly.
Quarterly periods and deadlines
| Quarter ending | Electronic payment due by |
|---|---|
| 5 July | 22 July |
| 5 October | 22 October |
| 5 January | 22 January |
| 5 April | 22 April |
RTI is unchanged
Quarterly payments don't change your reporting obligations. You still need to file a Full Payment Submission (FPS) on or before each pay date, regardless of how often you pay HMRC.
Should you switch?
- Pros: better cash flow, fewer payments to manage, less chance of missing a monthly deadline
- Cons: larger lump sum each quarter (be ready for it), penalties hit harder if you miss one
Need help with this?
Book a call and we will explain the next steps clearly.