How to pay an HMRC penalty: methods, references and deadlines

You pay an HMRC penalty the same way you pay tax: by bank transfer, card, Direct Debit or cheque, within 30 days of the date on the penalty notice. What changes is the reference. A Self Assessment penalty uses your UTR followed by K, a PAYE penalty uses a 14-character reference starting with X, and a Corporation Tax penalty uses the company’s 17-character payment reference.

When do you have to pay?

You have 30 days from the date on the penalty notice. GOV.UK’s Self Assessment penalty page says interest is charged if you pay after that.

If the deadline falls on a weekend or bank holiday, your payment must reach HMRC by the last working day before it. Faster Payments are the exception. For PAYE penalties, GOV.UK says the 30 days is also your window to pay or appeal, so decide quickly whether you have grounds.

Which reference do you use?

Use the reference for the type of penalty. A wrong reference can delay your payment or put it against a different tax bill.

For PAYE, GOV.UK says do not use your PAYE Accounts Office reference. For Corporation Tax, the payment page says to use the reference for the accounting period the penalty applies to. If you cannot find your UTR, our guide on how to find your UTR number shows where it appears.

What are the bank details?

HMRC’s bank details depend on the penalty. These are the UK accounts GOV.UK gives for Faster Payments, CHAPS and Bacs.

Self Assessment penalties. Sort code 08 32 10, account 12001039 (HMRC Cumbernauld), or account 12001020 (HMRC Shipley). The bank transfer page says your notice of penalty assessment tells you which account to use. If you do not have it or are not sure, either account is fine.

PAYE penalties. Sort code 08 32 10, account 12001020 (HMRC Shipley), according to the PAYE penalty bank details.

Penalties with an X reference. HMRC’s guide to paying taxes, penalties or enquiry settlements, updated 15 June 2026, uses sort code 08 32 10, account 12001020 (HMRC Shipley). Use it only if no other HMRC payment guide covers your penalty.

From overseas, the HMRC Shipley IBAN is GB03 BARC 2011 4783 9776 92 and the BIC is BARCGB22. Pay in sterling.

How long does each method take?

Allow enough time for the payment to reach HMRC by the deadline.

Card payments carry a non-refundable fee, and HMRC does not accept personal credit cards. You can no longer pay at the Post Office.

How do you pay by cheque?

Make the cheque payable to “HM Revenue and Customs only” and write your reference on the back. HMRC’s X reference guidance gives the address as HMRC, Direct, BX5 5BD, and says not to fold the cheque. It must arrive before the deadline, so post it in good time.

What if you cannot pay?

Contact HMRC before the 30 days run out. You may be able to agree a payment plan, which HMRC will check is affordable. Our guide to Time to Pay arrangements explains how to apply.

For VAT, HMRC’s late payment penalty guidance says a Time to Pay arrangement can cover outstanding VAT, penalties and interest. If you break its terms, HMRC can cancel it and charge penalties as if it never existed.

Which applies to you?

• If you filed your tax return late, pay with your UTR plus K. See Self Assessment late filing penalties to check the amount.
• If you are an employer with a late FPS or payment, use the X reference on the PAYE notice.
• If your company filed its CT600 late, use the company’s 17-character reference for that period.
• If you think the penalty is wrong, appeal within 30 days rather than pay. Our guide on how to appeal an HMRC penalty explains how, and what HMRC accepts as a reasonable excuse sets out the grounds.

What to do now

1. Find the date and reference on the penalty notice.
2. Check the notice is genuine. Scammers pose as HMRC, so see our guide to HMRC scam calls and texts and log in to your HMRC online account to confirm.
3. Pay using the right reference, allowing for bank processing times.
4. Keep proof of payment until the penalty shows as cleared.

Frequently asked questions

How long do I have to pay an HMRC penalty?

You have 30 days from the date on the penalty notice. Interest is charged if you pay after that.

What reference do I use to pay a Self Assessment penalty?

Use your 10-digit Unique Taxpayer Reference followed by the letter K. That is 11 characters in total.

Which bank account do I pay a Self Assessment penalty into?

Sort code 08 32 10, account 12001039 (HMRC Cumbernauld) or 12001020 (HMRC Shipley). Your notice says which; if you are not sure, either is accepted.

Can I pay an HMRC penalty by credit card?

You can pay with a debit card or corporate credit card, for a non-refundable fee. HMRC does not accept personal credit cards.

Can I pay a penalty in instalments?

You may be able to agree a payment plan with HMRC if you cannot pay in full. Contact HMRC before the 30-day deadline.