HMRC announced on 16 December 2011 that the new Faster Payments service recently introduced by the banking industry for sending payments initiated by internet or telephone banking on the same or next day will be available for payment of income tax by self assessment, providing the value of the payment does not exceed the value limit set by the sending bank.

Before making any payment it is important to check with your bank or building society to confirm the services available to you, any daily value limits and the latest cut off times for making a payment. Given the upcoming deadline of 31 January 2012 for 2011 Tax Return filing online this will be a useful facility for taxpayers to avoid possible penalties for late payment of tax due.

It is still possible to pay any tax due by post but the monies must be cleared by HMRC on or before 31 January 2012 which in practice means allowing sufficient time for the passage of the postal system.