You may be able to pay through PAYE if you owe less than £3,000, already pay tax through PAYE and file online by 30 December. HMRC also checks whether enough PAYE income is available. Confirm what is collected through your code and what still needs paying separately.
Check all the conditions
HMRC’s guidance requires a bill below £3,000, an existing PAYE source such as employment or a company pension, and filing by the relevant early deadline: 31 October on paper or 30 December online. You cannot make a part payment just to bring a bill of £3,000 or more under the limit.
There must be enough PAYE income
HMRC will not collect the bill this way if there is insufficient PAYE income, the resulting tax would exceed 50% of that income, or the collection would make you pay more than twice your usual tax. The bill being small is not the only test.
How collection works
If all conditions are met, HMRC normally arranges coding automatically unless you ask it not to on the return. It takes the relevant amount through salary or pension deductions over 12 months. Tell the accountant your preference before approving the return.
Check the outcome and any balance left
Filing before 30 December does not by itself prove the tax code has been changed. Read the coding notice and HMRC statement. Do not assume payments on account or every National Insurance amount are covered; HMRC has particular limits for Class 2.
For a 2025/26 return, aim to provide records well before 30 December 2026. If coding is unavailable, arrange another payment method rather than treating the amount as postponed.
What the monthly deduction could look like
An eligible £2,400 bill collected over 12 equal months would add £200 a month to PAYE deductions. This is an arithmetic example, not confirmation that HMRC will accept coding for your bill.
Check three things after filing: the coding notice, the first affected payslip or pension statement, and any amount still due directly to HMRC. If the expected change is missing, query it before relying on that collection method. Keep payments on account in a separate line on your payment plan.
A small bill is only one eligibility test
Illustrative example.
A fictional employee owes £2,900 and files online by 30 December. Being below £3,000 does not itself establish that collection through PAYE will happen: the other conditions and income limits still matter. Compare the HMRC coding outcome with the amount outstanding.
A different person owing £3,100 cannot make a £200 part payment simply to meet the under-£3,000 condition. These examples illustrate the eligibility boundary, not a personalised payment recommendation or assurance that a particular code will be issued.
| Check | Practical action |
|---|---|
| Bill below £3,000 | Check the other PAYE and filing conditions too. |
| Bill £3,000 or above | A part payment cannot be used just to meet this threshold. |
| Return submitted early | Verify the coding outcome and amounts still payable. |
Is 30 December the deadline for every online return?
It is the earlier online filing date relevant to this collection option. The ordinary filing deadline and your own notice still need checking.
What if HMRC does not collect the bill through my code?
Check what remains payable and arrange the appropriate payment route by the applicable deadline. Do not assume the balance has been deferred.
Download a checklist for this guide
- Tax year and bill amount
- Existing PAYE income
- Online submission date and preference recorded
- Coding notice and deductions
- Amounts requiring separate payment