Pay Climate Change Levy

You must submit your return in the same way for both the main Climate Change Levy and Carbon Price Support rates. You must pay any levy due within 30 days of the end of each reporting period.

HMRC offers a 7 day delayed payment concession if you pay by Direct Debit.

If the deadline is on a weekend or bank holiday, make sure your payment reaches HMRC by the end of the previous working day.

If you do not pay by the deadline, you may need to pay a penalty, interest or both.

You need your 13-digit payment reference number.

If you use the wrong reference number your payment may be delayed or used to pay a different tax bill that you owe. If your payment has paid the wrong tax bill, you can contact Climate Change Levy enquiries to ask for your payment to be moved.

You can approve a payment through your online bank account.

You can pay by approving a payment through your online bank account by selecting the ‘pay by bank account’ option.

You will be directed to sign in to your online or mobile banking account to approve your payment.

You will need to have your online banking details to hand to pay this way.

The payment is usually instant but can take up to 2 hours to show in your bank account.

To set up a Direct Debit, you can print out and post the Direct Debit Instruction form.

You should allow 10 working days for HMRC to set up your Direct Debit. You’ll need to use another method to pay if it is not set up in time.

Once HMRC has set up your Direct Debit, they’ll automatically collect the amount shown on your return.

You must pay in a different way if you are making a payment of more than £20 million.

If you pay by CHAPS (Clearing House Automated Payment System) or Faster Payments, your payment will be received on the same or next working day.

If you pay by Bacs (Bankers Automated Clearing System), allow 3 working days for the payment to reach HMRC.

We recommend you check your bank’s processing times and maximum transaction limits before you pay.