Using the right PAYE reference

When making PAYE payments to HMRC it’s important to use the correct PAYE reference, otherwise the payment may not be recognised and this can lead to HMRC issuing penalties and charges even if the payment has been made on time.

Your payment reference number is specific to the type of tax and payment period the payment is for.  The characters in your payment reference number tells HMRC where to allocate the payment and ensures the payment is allocated quickly.

If you’re paying your PAYE on time in the current period, all you need is your 13-character Accounts Office reference.

If you’re not paying for the current period, you need to add four extra characters to the end of your Accounts Office reference. These final four characters will state the tax year and month or quarter your payment relates to. All 17 characters should be entered without any spaces.

For the tax year: Use 22 for the tax year from 6 April 2021 to 5 April 2022 or use 23 for the tax year from 6 April 2022 to 5 April 2023.

For the month:

6 April to 5 May, use 01

6 May to 5 June, use 02

6 June to 5 July, use 03 etc.

For the quarter:

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

As each tax period has a different payment reference it’s important to make separate payments for each period.

You can use use the ‘Pay now’ tool on GOV.UK to find out which character to use.

In the event that your payment is allocated incorrectly by HMRC you will need to phone the employers helpline on 0300 200 3200 to have the payment allocated to the correct period.