Make PAYE payments by Direct Debit – at last!
Employers will now be able to make PAYE payments by Direct Debit each month. Previously it has only been possible to set up a one-off Direct Debit payment.
This seems such a basic feature, but will make life easier for employers at last!
It comes as part of HMRC’s modernisation programme, as part of project to make payment methods consistent across the various tax types.
There will be accompanying changes to the Business Tax Account and the employers liabilities and payments screens, and a new link to ‘Set up a Direct Debit‘. This will allow HMRC to collect PAYE liabilities based on the reports submitted when payrolls are processed.
The link will change to ‘Manage your Direct Debit‘ once a mandate has been set up, and from here an employer will be able to view, change of cancel the Direct Debit.
As Agents, we won’t be able to access, view, amend or cancel your Direct Debits, although HMRC do say that we will eventually be able to see employer liabilities and payment records, which seems almost as basic as enabling ongoing payments by Direct Debit!
Arranging to make PAYE payments by Direct Debit will reduce administrative time for employers, and reduce the risk of forgetting to make the monthly manual payments.
We’d definitely recommend that our employer clients take advantage of the Direct Debit as soon as you are able to do so.
This Gov.uk page explains the process for setting up a recurring Direct Debit.
As ever, if you have any questions around paying your PAYE, or any other aspect of your business adders, please get in touch.
We send regular updates that keep clients aware of changes and suggestions on a wide range of subjects; if you’d like to receive those too, just add your details below and we’ll do the rest! We promise not to bombard you and you can unsubscribe at any time.