Direct debits for PAYE from 19 September

Direct debit

HMRC have announced they will launch a variable payment plan which allows employers to set up a recurring direct debit to pay PAYE and national insurance liabilities from 19 September 2022.

direct debit

Under the current system, only a single payment can be made by direct debit.

When will payment be taken?

The recurring direct debit payment will be drawn on the 23rd of each month, or the next bank working day. The employer will receive notice three days in advance of every collection date, to ensure they are notified of the amount being collected.

How do you set up a recurring direct debit PAYE payment?

The new option to set up a direct debit will launch on 19 September.

From this date, the Business Tax Account service will be updated with changes and will include a new link to ‘Set up Direct Debit’.

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.

Under the new system, we as your accountants are unable to set up direct debits on behalf of our clients, as banking rules require direct debits to be set up by a signatory to the bank account.

The facility to create, view, amend and cancel a direct debit is also restricted to employers only.

If you need any more information or advice on how to set up your direct debit to pay PAYE, then please do not hesitate to contact us.

Sources: Gov.UK, ICAEW

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