Pay employers' Class 1A National Insurance

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1. Overview

You must pay Class 1A National Insurance contributions on work benefits you give to your employees, such as a company mobile phone.

You must also pay them on payments of more than £30,000 that you make to employees when their employment ends, such as a redundancy payment (바카라 사이트˜termination awards바카라 사이트™).

This guide is also available in Welsh (Cymraeg).

You only have to pay Class 1A National Insurance contributions on termination awards if you have not already paid Class 1 National Insurance contributions on them.

There바카라 사이트™s different guidance on payment of Class 1A National Insurance on sporting testimonials.

When to pay

When you pay Class 1A National Insurance contributions depends on whether they are work benefits or termination awards.

Work benefits

You need to pay contributions on work benefits by 22 July each year for the previous tax year. You바카라 사이트™ll need to pay by 19 July if paying by post.

Termination awards

You pay contributions on termination awards through PAYE.

Pay contributions on work benefits online

You can pay online by:

  • approving through your bank account
  • Direct Debit (pay automatically or one-off payment)
  • debit or corporate credit card

Other ways to pay contributions on work benefits

Make sure you pay HM Revenue and Customs (HMRC) by the deadline. You may have to pay interest and penalties if your payment is late.

The time you need to allow depends on how you pay.

Same or next day

3 working days

5 working days

If the deadline falls on a weekend or bank holiday, your payment must arrive in HMRC바카라 사이트™s bank account on the last working day of the week (unless you바카라 사이트™re paying by Faster Payments using online or telephone banking).

Payment booklets 

HMRC no longer sends printed payment booklets. 

You can still pay tax you owe from the tax year 6 April 2023 to 5 April 2024 at your bank or building society using a payment booklet, if you already have one. To pay tax for the current tax year, you must choose another way to pay.

2. Direct Debit

You can set up a Direct Debit through your to either:

  • pay your bill automatically
  • make a single payment

You cannot use an existing Direct Debit for standard PAYE payments.

Pay your bill automatically

HMRC will automatically collect the payment from your bank account based on the amount in your return. You바카라 사이트™ll only need to set the Direct Debit up once.

Set it up at least 4 working days before your payment due date.

HMRC will usually take the payment either:

  • shortly after the 22nd of the month
  • 4 working days after you file the return (if you file it after the 19th of the month)

HMRC will tell you the date and amount no later than 3 working days before the payment is collected. The payments will show on your bank statement as 바카라 사이트˜HMRC ³§¶Ù¶Ù³§바카라 사이트™.

HMRC will automatically collect the payment from your bank account if you have a Variable Direct Debit for Employers바카라 사이트™ PAYE in place.

Make a single payment

You바카라 사이트™ll need to give a 17-character payment reference. This starts with your 13-character Accounts Office reference number.

You can find this on the letter HMRC sent you when you first registered as an employer.

Add the tax year you want to pay for and the digits 바카라 사이트˜13바카라 사이트™. If you do not do this, your payment will be allocated to the current tax year instead.

Example

Your Accounts Office reference number is 123PA00012345.

To make a payment for the 2023 to 2024 tax year, add the digits 바카라 사이트˜2413바카라 사이트™ to your reference number. Your 17-character reference is 123PA000123452413.

Allow 5 working days to process a Direct Debit the first time you set one up. It should take 3 working days the next time if you바카라 사이트™re using the same bank details.

If you바카라 사이트™ve not used your Direct Debit for 2 years or more, check with your bank that it바카라 사이트™s still set up.

3. Approve a payment through your online bank account

You can pay Class 1A National Insurance directly using your online or mobile bank account.

You바카라 사이트™ll need to have your banking details ready before you start.

When you바카라 사이트™re ready to pay, . Select 바카라 사이트˜pay by bank account바카라 사이트™. You바카라 사이트™ll then be directed to sign in to your online or mobile banking account to approve a payment to 바카라 사이트˜HMRC Shipley바카라 사이트™.

You can select a date to pay, as long as it바카라 사이트™s before your payment is due.

Check your account to make sure that the payment has gone out on the correct day. If the payment has not gone out as expected, speak to your bank.

The payment is usually instant but can take up to 2 hours to show in your bank account.

4. Make an online or telephone bank transfer

You can make a bank transfer using Faster Payments, CHAPS or Bacs:

  • from your online bank account
  • by phoning your bank

Use the following bank details for HMRC:

  • sort code - 08 32 10
  • account number - 12001039
  • account name - HMRC Cumbernauld

Reference number

You바카라 사이트™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 바카라 사이트˜13바카라 사이트™ to make sure your payment is assigned correctly.

Tax year Add these digits to your reference number
2022 to 2023 2313
2023 to 2024 2413
2024 to 2025 2513

Example

Your Accounts Office reference number is 123PA00012345.

To make a payment in July 2024 for the previous 2023 to 2024 tax year, add the digits 바카라 사이트˜2413바카라 사이트™ to your reference number so that your reference is now 123PA000123452413.

You can find your Accounts Office reference number on the letter HMRC sent you when you first registered as an employer.

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

How long it takes

Payments by 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 bank바카라 사이트™s processing times.

Bacs payments usually take 3 working days.

Check your bank바카라 사이트™s transaction limits and processing times before making a payment.

Overseas payments

Use these details to pay from an overseas account:

  • account number (IBAN) - GB62BARC20114770297690
  • Business Identifier Code (BIC) - BARCGB22
  • account name - HMRC Cumbernauld

Some banks will charge you if you do not pay in pound sterling.

HMRC바카라 사이트™s banking address is:

Barclays Bank PLC
1 Churchill Place
London
United Kingdom
E14 5HP

5. By debit or corporate credit card online

You can .

There바카라 사이트™s a fee if you pay by corporate credit card or corporate debit card. The fee is not refundable.

There바카라 사이트™s no fee if you pay by personal debit card.

You cannot pay by personal credit card.

HM Revenue and Customs (HMRC) will accept your payment on the date you make it (even on bank holidays and weekends) - not the date it reaches HMRC바카라 사이트™s account.

If you바카라 사이트™re unable to pay your Class 1A National Insurance bill in full by card, you should use another payment method like a bank transfer.

Reference number

Make your payment to 바카라 사이트˜HMRC Cumbernauld바카라 사이트™ office. You바카라 사이트™ll need to give a 17-character payment reference. This starts with your 13-character Accounts Office reference number.

You can find this on the letter HMRC sent you when you first registered as an employer.

Add the tax year you want to pay for and the digits 바카라 사이트˜13바카라 사이트™. If you do not do this, your payment will be allocated to the current tax year instead.

Example

Your Accounts Office reference number is 123PA00012345.

To make a payment for the 2023 to 2024 tax year, add the digits 바카라 사이트˜2413바카라 사이트™ to your reference number. Your 17-character reference is 123PA000123452413.

6. By cheque through the post

You can send a cheque by post to HM Revenue and Customs (HMRC).

HMRC
Direct
BX5 5BD

You do not need to include a street name, city name or PO box with this address.

Allow 3 working days for your payment to reach HMRC.

What to include

Make your cheque payable to 바카라 사이트˜HM Revenue and Customs only바카라 사이트™.

Write your Class 1A reference number on the back of the cheque. You바카라 사이트™ll find this on your payslip.

Include the payslip HMRC sent you. Do not fold the payslip or cheque or fasten them together.

Your payment may be delayed if you do not fill in your cheque properly.

If you want a receipt, include a note asking for one.

If you do not have a payslip

You can to use to pay by post. You cannot use this at a bank.

7. Check your payment has been received

Check your - it should update within 6 working days.

If you바카라 사이트™re paying by cheque through the post, you can include a letter with your payment to request a receipt from HMRC.

8. Class 1A contributions on sporting testimonials

A sporting testimonial is an event or series of events to honour a player for their service, such as when the player retires.

The testimonial committee must pay Class 1A National Insurance if the payment to a player is:

  • more than £100,000
  • not in the player바카라 사이트™s contract

The payment is usually the profit from the event.

The committee must pay the contributions on the payment through PAYE.