Many small employers track net pay and forget the HMRC payment that follows. A calm week after payday can still take a hit when PAYE and NIC are due. This guide separates the two cash events and shows how to diary them.
This page is general information for UK employers. Confirm your exact dates, amounts and any special schemes with payroll, your accountant and current GOV.UK PAYE for employers guidance.
Cashwatch™ by Ask Alfred™ keeps tax timing on the same 13-week view as debtors and suppliers. Alfred prepares the picture. You decide what to do. Ask Alfred™ does not run payroll or pay HMRC for you. Regulated tax work stays with a qualified professional.
Two cash events, not one
| Event | What leaves the bank | Typical timing |
|---|---|---|
| Payday | Net wages (and often pension contributions) | Your payroll date |
| PAYE / NIC to HMRC | Income Tax and National Insurance you deducted, plus employer NIC | Usually later in the following tax month (see below) |
If your forecast only shows net wages, it understates the true cost of employing people. Glossary: PAYE and National Insurance.
The usual HMRC payment deadline
For many employers paying electronically, PAYE and NIC for a tax month are due by the 22nd of the following tax month. If you pay by post, GOV.UK guidance commonly uses an earlier date (often the 19th). Always check the date that applies to your payment method.
UK tax months for PAYE run from the 6th to the 5th (for example 6 April to 5 May). Your payroll software or accountant should map each pay run to the correct tax month.
Example (illustrative only): wages paid in the tax month ending 5 June may have an HMRC payment due later in July. Confirm the calendar for your runs; do not copy the example as your deadline.
Reporting is not the same as paying
Full Payment Submissions (FPS) and other payroll reports have their own filing rules. Paying HMRC on time does not fix a missing report, and filing on time does not move cash by itself. Treat reporting and payment as separate checklists with your payroll provider.
Put PAYE on the 13-week grid
- List the next thirteen weeks of paydays (net wages out).
- Add the matching HMRC PAYE/NIC due dates for those tax months.
- Include employer NIC as well as deductions from wages.
- Mark anything still estimated from the last payroll run.
- Find weeks where payday and HMRC payment collide with VAT or corporation tax. See cash flow forecasting that includes tax.
Use the cash flow forecast template UK or the printable 13-week template if you are building this by hand.
A calm weekly checklist
Diary payday and HMRC day separately for every tax month in the next quarter.
Match each pay run to a tax month with payroll or your accountant.
Forecast employer NIC, not only employee deductions.
Watch collision weeks with VAT and corporation tax payments.
Keep Tax prep in the loop when year-end or MTD questions sit next to payroll: see Tax prep.
Late payment and help
Late PAYE payments can attract interest and penalties. If cash is tight before an HMRC due date, speak to your accountant early. Do not silently skip a payment or a report. Alfred and this guide help you see the timing; they do not replace professional payroll or tax advice.
What to read next
- Cash flow forecasting that includes tax
- Cash flow forecast template UK
- When will my business run out of cash?
- Corporation tax payment deadline UK
- VAT return checklist
- PAYE and National Insurance in the glossary
- Cashwatch™
- Tax prep
This page is general information for UK employers. Deadlines, payment methods and penalties can change. Check GOV.UK and your accountant or payroll provider for your situation. Nothing here is regulated advice, and nothing regulated should be submitted or paid on your behalf without human approval from a qualified professional.