HMRC issues reminder for employers to check PAYE Payment References

HM Revenue & Customs (HMRC) have issued a reminder for employers who make PAYE payments to check they are using the correct payment reference. An incorrect payment reference can lead to HMRC issuing penalties and charges even if the payment has been made on time, employers then have to call HMRC to correct the issue.

What is a payment reference?

A payment reference number is specific to the type of tax and the accounting period the payment is for. The characters in the payment reference number tell HMRC where to allocate payments.

Employers should take care when paying using online banking services as this may default to a previous payment reference not relating to the current payment. It’s important to check that the reference is correct every time a payment is made to HMRC.

Where to find the payment reference?

1. Paying for a current period

If paying on time for the current period, use the 13-character Accounts Office reference. This can be found on: 

• the letter HMRC sent when first registering as an employer
• the front of the payment booklet
• the letter from HMRC that replaced the booklet
• the Business Tax Account, if the Employer PAYE enrolment has been added.

2. If not paying for the current period

If not paying for the current period, add 4 extra characters to the end of the Accounts Office reference. These final 4 characters will show the year and the month or quarter the payment is for. All 17 characters should be entered without any spaces.

• Characters 1 to 13 are the Accounts Office reference
• Characters 14 and 15 are for the tax year. For example, 22 for the tax year from 6 April 2021 to 5 April 2022, or 23 for the tax year from 6 April 2022 to 5 April 2023.
• Characters 16 and 17 are for the tax month or quarter depending on how the PAYE is paid – examples of these can be found below.

Each tax period has a different payment reference number, so it’s important to make separate payments for each period.

If making monthly payments the reference to use for each month are: 

• 6 April to 5 May, use '01'
• 6 May to 5 June, use '02'
• 6 June to 5 July, use '03'
• 6 July to 5 August, use '04'

For example, to pay for the month ending 5 June 2022 (month 2 of the 2022 to 23 tax year), add the 4 extra characters 2302 to the end of the Accounts Office reference – 23 to tell HMRC it’s for the tax year ending 5 April 2023 and 02 as it relates to month 2.

If making quarterly payments the reference to use for each period are: 

• 6 April to 5 July, use '03'
• 6 July to 5 October, use '06'
• 6 October to 5 January, use '09'
• 6 January to 5 April, use '12'

For example, to pay for the quarter ending 5 October 2021, add the 4 extra characters 2206 to the end of the Accounts Office reference – 22 to tell HMRC it’s for the tax year ending 5 April 2022 and 06 as this is the quarter it relates to.

3. If making yearly payments

If making yearly payments, add 4 characters that identify the tax year and tax month in which the employees are paid. 

For example, the employees were paid on 8 April 2022, add the 4 extra characters 2301 to the end of the Accounts Office reference – 23 to tell HMRC it’s for the tax year ending 5 April 2023 and 01 as month 1 is the month it was paid in.

For further information on paying PAYE to HMRC, see the GOV.UK website.

If you have any queries about making payments to HMRC, please contact our office on 01524 67111.