You’ve probably seen it on your bank statement, but actually what is a BACs payment? BACs (or Bankers Automated Clearing System) is an electronic system used to make payments directly from one bank account to another. It’s a secure method of payment that’s been used in the UK since 1968, and for over 100 billion transactions.
There are two main types of BACS payment: Direct Debit and Direct Credit.
How to use a BACs payment for your Self Assessment tax bill
If you want to pay using BACs, you’ll need your UTR number. Here’s how to find your UTR if you don’t have one or if you’ve lost it.
A few things to remember:
- The tax deadline is 31st of January
- Getting a new UTR can take a few weeks
- It can take up to 3 working days for the BACs payment to reach HMRC
When it comes to making the payment, you can use one of the below accounts. Check your tax bill for which one you need.
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