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Employer PAYE to be payable by Direct Debit

Employer PAYE to be payable by Direct Debit

Lorna Bloor

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From mid-September, HMRC is set to introduce a recurring direct debit option for employers using the PAYE system. 

Currently, employers can only set up a direct debit to collect a single payment. However, updates to the system will allow employers to set up and manage recurring direct debits online. 

N.B. Your accountant or payroll provider will not be able to set up, amend or cancel a direct debit, only you, the employer will be able to do this. 

Once available, there will be a change to the business tax account (BTA) and the employers’ liabilities and payments screens. There will be a new link for ‘set up a direct debit’. This will allow client companies to set up a direct debit instruction once, authorising HMRC to collect directly from their bank account based on their return submissions.

After an employer has set up a direct debit, the link will change to ‘manage your direct debit’ and an employer will be able to view, change or cancel the direct debit online.

Payments which will be covered by direct debit will show within employers’ liabilities and payment screens for both employers and agents.

For more information, visit gov.uk or contact your usual Moore advisor.