How do I pay tax due using my PAYE tax code

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 the criteria above, HMRC will 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
• If you pay more than 50% of your PAYE income in tax
• You end up paying more than twice as much tax as you normally do

How do I request paying through my code within 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,  box 2 will be 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 2023-24 Tax collection, you will see a tick next to If your liability is less than £3,000, HMRC can collect this through your 2024-25 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.