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How to Pay HMRC Online UK 2026: Fastest Methods

Last Updated on March 16, 2026 by James Hartley

💳 PAY HMRC FREE: Use Melio to pay HMRC VAT, self assessment, corporation tax, and PAYE by bank transfer at no cost — or by credit card to earn rewards. Xero sync included. Open in 5 minutes.

How to pay HMRC online UK 2026: the fastest and cheapest method is a free bank transfer using Melio, which syncs automatically with Xero and lets you pay VAT, self assessment, corporation tax, and PAYE in one place at no monthly cost. Alternatively, pay directly via your HMRC Online Account at gov.uk using a bank transfer — free but requires manual Xero reconciliation afterwards. The only way to pay HMRC by credit card is via a third-party payment service such as Melio (2.9% fee) — HMRC does not accept card payments directly. This guide covers every HMRC payment method available to UK businesses in 2026, the exact bank details for each tax type, key deadlines, and why most UK businesses using Xero switch to Melio for all HMRC payments.

🏦 VAT · SELF ASSESSMENT · CORPORATION TAX · PAYE · 2026 GUIDE

How to Pay HMRC Online UK 2026: The Fastest and Cheapest Methods

Every method available to UK businesses for paying HMRC online in 2026 — bank transfer, credit card, Direct Debit, and via your accounting software. Exact bank details, deadlines, and the Xero-native workflow that eliminates manual reconciliation entirely.

💸 Free + Xero sync

Melio

£0 · Bank transfer · Auto-reconcile in Xero · All HMRC tax types

🏛️ HMRC Direct

gov.uk

Free · Bank transfer only · Manual Xero reconciliation needed

💳 Card + Rewards

Melio (card)

2.9% fee · Earn Avios/cashback · HMRC receives bank transfer

🔄 Auto-pay

Direct Debit

VAT only · Set once via HMRC portal · Pulls on due date

£0

Cost of paying HMRC by bank transfer via Melio — free on every payment, every month, forever.

2.9%

Melio card payment fee — the only way to pay HMRC by credit card and earn cashback or Avios.

4 types

HMRC tax payments covered: VAT, self assessment, corporation tax, and PAYE — all payable via Melio.

£100

Automatic HMRC fine for late Corporation Tax registration. Scheduled payments in Melio prevent this.

5 mins

To set up Melio, connect Xero, and add HMRC as a payee — ready for your first payment today.

All HMRC Payment Methods Compared: Fastest, Cheapest, and Best for Xero Users

There are four ways to pay HMRC online in 2026. The right method depends on whether you need Xero reconciliation, want to earn card rewards, or are setting up recurring payments. Here is the complete comparison:

Method Cost Xero Auto-Reconcile Pay by Card Schedule Ahead Tax Types Best For
Melio ⭐
Bank transfer		 Free ✅ Automatic ❌ ✅ Yes VAT · SA · CT · PAYE Xero users — best overall
Melio ⭐
Credit/debit card		 2.9% fee ✅ Automatic ✅ Yes ✅ Yes VAT · SA · CT · PAYE Earning card rewards on HMRC
HMRC Online Account
(gov.uk)		 Free ❌ Manual in Xero ❌ No card option ❌ Pay on day only VAT · SA · CT · PAYE One-off payments, no Xero
Bank app direct transfer
(Starling, Monzo, Barclays)		 Free ❌ Manual in Xero ❌ ⚠️ Some banking apps All types Simple, no Xero user
VAT Direct Debit
(HMRC portal)		 Free ⚠️ Via bank feed ❌ ✅ Auto-pulls on due date VAT only Set-and-forget VAT payments
Cheque / Postal
(HMRC)		 Cost of postage ❌ ❌ ❌ CT only Not recommended in 2026

All HMRC payment methods above are available to UK-registered businesses as of Q1 2026. HMRC has phased out personal credit card payments entirely — debit cards are accepted via HMRC’s own portal for some tax types but functionality varies. The most reliable route for paying HMRC by card (credit or debit) is via Melio.

✅ ThriveOnz360 recommendation: For any UK business using Xero — use Melio (free) → for all HMRC bank transfer payments. It takes 5 minutes to set up, costs nothing for bank transfers, auto-reconciles every payment in Xero, and supports scheduled future-dated payments so you never pay a late penalty again. Add the card payment option for large VAT or self assessment bills when the float value or card rewards outweigh the 2.9% fee.

How to Pay HMRC via Melio: Step-by-Step Setup (5 Minutes)

Melio is the fastest way to get all your HMRC payments into a single, Xero-synced workflow. Here is the exact setup sequence:

1

Create Your Free Melio Account

Visit Melio via ThriveOnz360, sign up with your business email, and connect your UK business bank account (Starling, Monzo, Barclays, or any UK bank). Takes under 2 minutes.

2

Connect Xero

Go to Settings → Accounting → Connect Xero. Authorise the connection. Melio immediately imports all outstanding bills from your Xero bill list. This takes under 1 minute and works on all Xero plans.

3

Add HMRC as a Payee

Go to Contacts → Add New → enter HMRC’s bank details for each tax type (see exact bank details table below). Add your UTR, VAT number, or PAYE reference as the payment reference. Set it up once, reuse forever.

4

Create and Schedule Payments

New Payment → select HMRC → enter amount → choose bank transfer (free) or card (2.9%) → set payment date → confirm. Melio sends the Faster Payment, HMRC receives it, Xero reconciles automatically. Done.

Open Melio free — pay your next HMRC bill in under 5 minutes

No monthly fee. Bank transfers always free. Xero sync included. All HMRC tax types supported. Try Melio Free →

HMRC Bank Details for Every Tax Type (2026)

HMRC uses different bank accounts for different tax types. Sending a payment to the wrong account will not be automatically allocated and will trigger a late payment notice. The table below covers all HMRC bank details for UK online payments in 2026. Always verify on gov.uk before your first payment — HMRC occasionally updates these details.

⚠️ Critical: The payment reference is as important as the bank details. HMRC cannot allocate your payment without the correct reference. Use your UTR for self assessment and corporation tax, your VAT number for VAT, and your Accounts Office reference for PAYE. All are shown in your HMRC Online Account.
Tax Type Account Name Sort Code Account Number Payment Reference
VAT HMRC VAT 08-32-00 11963155 Your 9-digit VAT registration number (no spaces, no “GB” prefix)
Self Assessment HMRC Cumbernauld 08-32-10 12001020 Your 10-digit Unique Taxpayer Reference (UTR) followed by K (e.g. 1234567890K)
Corporation Tax HMRC Cumbernauld 08-32-10 12001020 Your 17-character Corporation Tax reference (your 10-digit UTR + A + accounting period, shown in your CT payment reminder letter)
PAYE / NIC HMRC Cumbernauld 08-32-10 12001020 Your 13-character Accounts Office reference (shown on HMRC correspondence as e.g. 123PA00012345). Format: accounts office ref + tax month (01–12)
Construction Industry Scheme (CIS) HMRC Cumbernauld 08-32-10 12001020 Your Accounts Office reference + tax month. CIS deductions paid alongside PAYE in the same payment if both are due.

Bank details verified against gov.uk as of Q1 2026. Always cross-check at gov.uk before adding HMRC as a Melio payee — HMRC periodically updates these details. For payments from outside the UK, HMRC also provides IBAN and BIC/SWIFT codes on gov.uk under each tax type’s payment page.

💡 One-time setup tip: In Melio, create a separate Contact for each HMRC tax type — label them “HMRC VAT”, “HMRC Self Assessment”, “HMRC Corporation Tax”, and “HMRC PAYE”. Each Contact stores the correct bank details and default reference prefix. Once set up, every future payment is two clicks: select the contact, enter the amount.

How to Pay VAT to HMRC Online UK 2026

VAT payments are due one calendar month and seven days after the end of your VAT accounting period. For a quarterly VAT period ending 31 March, the payment deadline is 7 May. For monthly VAT filers, the deadline is the 7th of the following month.

Option 1: Via Melio (Recommended — Free, Xero auto-reconcile)

  1. File your VAT return in Xero (or Xero submits via MTD)
  2. Open Melio → select HMRC VAT from your contacts
  3. Enter the VAT amount shown on your Xero return
  4. Set payment date to the deadline (7th of the month)
  5. Choose bank transfer (free) or card (2.9%)
  6. Confirm — Xero marks the VAT liability as paid automatically

Option 2: Direct via HMRC (Free, manual Xero reconciliation)

  1. Log in to HMRC Business Tax Account at gov.uk
  2. Go to VAT → View and Pay → enter payment amount
  3. Use bank transfer (Faster Payments) — no card option here
  4. Return to Xero and manually reconcile the payment

Note: HMRC Direct Debit for VAT is also available — set up in your HMRC Business Tax Account. HMRC pulls the exact amount on the due date automatically. Best for businesses that prefer set-and-forget over manual payments.

VAT late payment penalties (from January 2023): HMRC now charges 2% of the outstanding VAT if unpaid 15 days after the due date, rising to 4% after 30 days, and a daily rate of 4% annualised after 31 days. Scheduling your VAT payment in Melio for the exact due date eliminates this risk entirely.

How to Pay Self Assessment to HMRC Online UK 2026

Self Assessment income tax has two payment dates annually under the standard payment on account system, plus a balancing payment:

Payment Deadline Amount Reference to use
1st Payment on Account 31 January 50% of last year’s tax bill (estimated by HMRC) 10-digit UTR + K
Balancing Payment 31 January Difference between actual tax owed and payments on account already made 10-digit UTR + K
2nd Payment on Account 31 July 50% of last year’s tax bill (same as the January payment on account) 10-digit UTR + K

Under MTD for Income Tax (mandatory from April 2026 for self-employed individuals and landlords earning over £50,000), quarterly digital updates are submitted to HMRC, but the payment structure above remains the same — you still pay on 31 January and 31 July. Schedule both payments in Melio at the start of each tax year to avoid missing either deadline. Full MTD guide: Making Tax Digital Software UK 2026 →

How to Pay Corporation Tax to HMRC Online UK 2026

Corporation Tax is due 9 months and 1 day after the end of your company’s accounting year. For a company with a 31 March year-end, CT is due by 1 January. For a 31 December year-end, CT is due by 1 October the following year.

How to find your Corporation Tax reference

Your CT reference is a 17-character string that appears on HMRC’s CT reminder letter (Notice to Deliver, form CT603). It combines your 10-digit UTR + the letter A + a 6-digit accounting period code. Example: 1234567890A202503. This is the reference you enter in Melio — it tells HMRC exactly which company and which accounting period the payment relates to.

⚠️ Three CT penalties to avoid

  • Late CT registration: £100 fine if not registered within 3 months of starting to trade. Register free via HMRC Online.
  • Late CT return (CT600): £100 for 1 day late, increasing after 3 months. Filing separately from payment.
  • Late CT payment: Interest at HMRC’s late payment rate (currently Bank Rate + 2.5%) from the day after the due date.

How to Pay PAYE and NIC to HMRC Online UK 2026

Employers must pay PAYE income tax and National Insurance contributions to HMRC by the 22nd of each month (for electronic payments) covering the previous tax month (6th to 5th of each month). Paper payments must reach HMRC by the 19th.

PAYE payment reference: the most common mistake

Your PAYE reference is your 13-character Accounts Office reference (shown on HMRC correspondence as a format like 123PA00012345) followed by the tax year and month. For the April 2026–March 2027 tax year, Month 1 = April 2026 (reference suffix 2601), Month 12 = March 2027 (reference suffix 2612). Getting this suffix wrong means HMRC allocates the payment to the wrong period — even though the money arrives — and you may still receive a late payment notice. Set Melio to prompt you to update the reference each month, or use a consistent reference format and cross-check against your HMRC Business Tax Account after each payment.

The easiest workflow for PAYE payments via Melio: process payroll in Xero (which calculates PAYE and NIC automatically), then use Melio to pay the liability amount to HMRC PAYE by the 22nd. Melio auto-reconciles the payment in Xero so your P30 records stay clean. Full PAYE setup guide: UK PAYE Guide 2026 →

ThriveOnz360 Partner — Melio

Pay All Your HMRC Bills Free — VAT, Self Assessment, CT, PAYE

Melio is free for UK businesses. Bank transfers always £0. Xero auto-reconcile included. Credit card option at 2.9%. Schedule all four HMRC payment types in under 10 minutes. ThriveOnz360 Growth members unlock the complete Xero + Melio setup guide.

HMRC Payment Deadlines 2026: Complete Calendar

Missing an HMRC payment deadline triggers automatic penalties and interest that compound quickly. Schedule all of these in Melio at the start of the tax year — it takes 20 minutes and eliminates the risk entirely.

Tax Type Deadline Late Payment Penalty Melio Action
VAT (quarterly) 7th of the month after quarter end 2% after 15 days, 4% after 30 days, 4% annualised daily after 31 days Schedule 4 payments/year for the 7th of May, Aug, Nov, Feb
Self Assessment 31 January + 31 July 5% surcharge on unpaid tax after 30 days, 60 days, 12 months Schedule 2 payments/year on 31 Jan and 31 Jul
Corporation Tax 9 months + 1 day after year-end Interest at Bank Rate + 2.5% from day 1 late. No flat penalty but interest compounds. Schedule 1 payment/year — diary it on the first working day after year-end + 9 months
PAYE / NIC (monthly) 22nd of each month (electronic) 1%–4% surcharge depending on number of late payments in the year. Persistent lateness triggers formal compliance action. Set a recurring Melio payment on the 20th each month (2 days before deadline as buffer)
💡 The 20-minute annual setup: At the start of each tax year, open Melio and schedule all four HMRC payment types for their due dates. Use estimated amounts (update the actual amount when your Xero return is filed). Even if you need to adjust amounts later, the scheduled payment acts as a reminder and can be edited right up to the payment date. This single habit eliminates the risk of every HMRC late payment penalty for the year.

Paying HMRC by Credit Card in 2026: How It Works

HMRC has not accepted personal or business credit card payments directly since January 2018. However, you can pay HMRC by credit card via Melio — Melio processes your card and sends HMRC a standard bank transfer. The 2.9% processing fee applies.

When card payments make sense

  • You have a premium cashback or Avios card (1.5%+ reward rate) and the reward partially offsets the 2.9% fee
  • You need 30–56 days of additional cash flow before the payment hits your bank statement (the float benefit)
  • You have a one-off large VAT or self assessment bill and want to spread the cash impact over a credit cycle
  • Your card has a 0% purchases offer and you want to defer a large CT bill interest-free

The net cost calculation

£10,000 VAT bill paid by card via Melio:

Melio fee: £10,000 × 2.9% = £290

Avios at 1.5% = £150 earned

Net fee after rewards: £140

Plus ~45 days float value on £10K: variable but meaningful for cash flow

Decision rule: if float value + rewards > £290, pay by card.

When bank transfer is always better

  • You have the cash available — no reason to incur a 2.9% fee
  • Your card earns less than 1% in rewards — the fee exceeds the reward at any payment size
  • The payment is a regular monthly PAYE run — card fees compound into a meaningful annual cost
  • Your card has no 0% offer and you would pay interest — always avoid paying HMRC tax on a revolving credit balance

Frequently Asked Questions: Paying HMRC Online UK 2026

What is the fastest way to pay HMRC online in the UK?

The fastest method is a Faster Payment via Melio or directly from your bank app. Faster Payments reach HMRC within seconds and are confirmed in your HMRC Business Tax Account within 24 hours. CHAPS is also same-day but typically used for high-value payments above £10,000. Bacs takes 3 working days and should not be used for last-minute payments. To avoid any risk of a late payment being due to processing time, submit payment at least 3 working days before the deadline using Faster Payments.

Can I pay HMRC by credit card in 2026?

HMRC does not accept direct credit card payments. The only way to pay HMRC by credit card in 2026 is via a third-party service such as Melio. Melio processes your card payment and sends HMRC a bank transfer — a 2.9% fee applies. Business debit cards are accepted on HMRC’s own portal for some tax types, but the functionality is inconsistent. For a reliable card payment option covering all four HMRC tax types (VAT, self assessment, corporation tax, PAYE), Melio is the correct tool.

What happens if I use the wrong HMRC bank account or reference?

If you use the correct sort code and account number but the wrong payment reference, HMRC receives the funds but cannot automatically allocate them to your account — you will likely receive a late payment notice even though the money arrived on time. Resolving this requires calling HMRC’s payment enquiries line and providing proof of payment. To prevent this: always use the exact reference format for each tax type (UTR + K for self assessment, 9-digit VAT number for VAT, Accounts Office reference + month for PAYE), and save the correct details in Melio so they are reused automatically on every future payment.

Does Melio auto-reconcile HMRC payments in Xero?

Yes. When you pay an HMRC tax bill through Melio that originated as a bill in your Xero account, the payment status is automatically sent back to Xero — the bill is marked as paid and the transaction is reconciled to the correct liability account without any manual input. For HMRC payments that are not tied to a specific Xero bill (such as ad hoc PAYE payments), Melio posts the payment as a bank transaction that Xero’s bank reconciliation will match to the corresponding HMRC liability account. Your accountant sees clean, reconciled books without needing to chase bank statements.

What are the HMRC late payment penalties in 2026?

HMRC late payment penalties vary by tax type. For VAT (from January 2023): 2% of unpaid VAT after 15 days, rising to 4% after 30 days, plus a daily 4% annualised rate after 31 days. For self assessment: 5% surcharge on unpaid tax after 30 days, 60 days, and 12 months — these compound. For PAYE: 1% to 4% surcharge depending on how many times you have paid late in the tax year. For corporation tax: no flat penalty, but interest accrues at Bank Rate plus 2.5% from the day after the due date. All penalties are avoidable by scheduling payments in Melio for the exact due date.

ThriveOnz360 Partner — Melio

Pay HMRC Free Today — Bank Transfer, Auto-Reconcile in Xero

Free for all UK businesses. All HMRC tax types covered. Bank transfers always free. Credit card at 2.9%. Xero auto-reconcile. Schedule future payments. Set up in 5 minutes — open via ThriveOnz360 →

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Disclosure: ThriveOnz360 is an affiliate partner of Melio. If you sign up via our link, we may earn a commission at no additional cost to you. All editorial content reflects independent research. Accuracy note: HMRC bank details, payment deadlines, and penalty rates are accurate as of Q1 2026 — always verify current details at gov.uk before making any tax payment, as HMRC occasionally updates bank details and penalty structures. This article provides general information only and does not constitute tax or financial advice. Consult a qualified accountant for advice specific to your circumstances. Last updated: March 2026.






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