BACs Payment

BACs (Bankers Automated Clearing System) is an electronic system used to make direct payments from one bank account to another. It’s the most common type of bank-to-bank payment and is a secure payment method that’s been used in the UK since 1968! There are two main types of BACs payment: Direct Debit and Direct Credit. BACs payments on your bank statement will usually be for regular payments such as your salary, tax credits, mortgage or subscriptions.

As a limited company, you can pay your Self Assessment tax bill via BACs payment, and you’ll need your Unique Taxpayer Reference number. You can get this number by registering with HMRC for Self Assessment. If you’ve lost your UTR number, you can find it on the front page of your previous tax returns or on your HMRC online account. The main thing to remember if you use BACs payments, however, it can take up to 3 working days for the payment to reach the vendor, including HMRC. The tax deadline is the 31st January, so don’t leave this to the last minute if you are using BACs!