How do I pay tax due using my PAYE tax code

Article ID: 3090
Last updated: 04 Jun, 2020

When can you pay tax owed through your PAYE code?

You can pay your Self Assessment tax bill through your PAYE tax code when all of the following apply:

  • you owe less than £3,000 on your tax bill
  • you already pay tax through PAYE, for example, you’re an employee or you get a company pension
  • you are submitting your paper tax return by 31 October or your online tax return online by 30 December
  • you have *sufficient PAYE income to allow HMRC to collect the amount

Providing you meet these conditions, HMRC will then automatically collect what you owe by adjusting your tax code.

*They will not adjust your code if:

  • you do not have enough PAYE income for HMRC to collect it
  • you’d pay more than 50% of your PAYE income in tax
  • you’d end up paying more than twice as much tax as you normally do

How do I request paying through my code in Taxcalc?

In TaxCalc HMRC Forms mode:

1. Go to SA100 Core Return>Page 6

2. In the section If you have not paid enough tax, you'll see box 2 is ticked. Please remove the tick if you would like to request that HMRC deduct the amount due from your tax code.

In TaxCalc SimpleStep mode:

1. Go to Working out your tax>Collecting tax through PAYE

2. In the section 2019-20 Tax collection you'll see a tick next to As the liability is less than £3,000, HMRC can collect this through your 2021-22 PAYE code(if you have one). If you would prefer this, please remove the tick

Class 2 National Insurance

If you’re self-employed you cannot pay Class 2 National Insurance through your tax code unless it’s been due since before 6 April 2015. You must use one of HMRC's other ways to pay by the deadline instead.

Article ID: 3090
Last updated: 04 Jun, 2020
Revision: 2
Views: 51
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folder Tax Return Production -> SA100 Individual Return