From early October, you can pay Employers PAYE by Direct debit. You will need to set up the direct debit once and it will automatically collect the monthly PAYE payment in the future.
HMRC has finally listened to Employers / agents and added a variable direct debit payment plan functionality so you can now pay Employers PAYE by Direct debit.
The service can be accessed through Pay employers' PAYE or directly through the business tax account and the employers PAYE service. (Agents cannot set this up for clients / Employers, as the new facility to create, view, amend and cancel a Direct Debit is restricted to employers only)
There will be changes to the business tax account and the employers' liabilities and payments screens on the employers' PAYE service.
A new link Set up a Direct Debit' will be introduced and this will allow customers to pay Employers PAYE by Direct debit, authorising HMRC to collect directly from their bank account based on their return submissions.
Following set up, the link will change to Manage your Direct Debit' and an employer will be able to view, change or cancel the Direct Debit online.
If signed up to the variable payment plan to pay Employers PAYE by direct debit, the following charges will be collected on receipt of the returns to HMRC:
- Full Payment Submission
- Employer Payment Summary
- Construction Industry Scheme
- Apprenticeship Levy
- Class 1A National Insurance
- Earlier Year Update
Employers must allow 5 working days to process a Direct Debit the first time you set one up. It should take 3 working days the next time if you are using the same bank details.
The payments will show on your bank statement as HMRC NDDS'.
About the Author: Kerrie Given
