Employer’s PAYE payable via Direct Debit

21 September 2022

The new option is available from 3 October 2022

advice : Bookkeeping and Clients

From the 3rd of October, employers will have the option to set up a new variable recurring direct debit plan for PAYE and national insurance liabilities.

This will be a great option as once set up, it will give clients the confidence that the HMRC payment will automatically be taken and will remove the need for them to make online or telephone payments.

Please note: The facility is restricted to employers only, and agents will NOT be able to set up the direct debits on behalf of their clients.

Direct Debit

Set up a Direct Debit through your business’ HM Revenue and Customs (HMRC) online account.

A new link “Set up a new direct debit” will be introduced to the Business Tax accounts and the employers’ liabilities and payments screens on the employers’ PAYE service.

Users will then have to set up a direct debit instruction, which will authorise HMRC to collect directly from their bank account based on their return submissions.

Once set up, the link will switch to “Manage your direct debit”. Employers will be able to use this option to view, amend or cancel the direct debit. 

How long it takes

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’re using the same bank details.

The payments will show on your bank statement as ‘HMRC NDDS’.

Nothing on this page is intended to be or should be construed or taken as accountancy, investment, tax or any other kind of advice. We recommend individuals and companies seek professional advice on their circumstances and matters.