Pay PAYE by Direct Debit.

Paying by direct debit is not for everyone but many businesses have long wanted to automate payment of monthly PAYE liability to HMRC to save having to login and add another payment to the list each month.

 

Well, HMRC has listened and as of 3rd October has confirmed the rollout of the new built-in direct debit function that allows each employer to pay monthly PAYE by direct debit.

 

Setting up the direct debit

 

HMRC have confirmed that the service will be available directly via each companies’ business tax and employers PAYE service and will be linked to the RTI submission each month which is produced once the payroll information is completed.

 

There will be changes to the business tax account and the employer’s payments screens on the PAYE service. A new link ‘Set up a Direct Debit’ will be introduced and this will allow customers to pay PAYE by Direct Debit, authorising HMRC to collect directly from their bank account.

 

The money will be taken on the 23rd of each month or the next working day.

 

Agents can’t act on your behalf

 

The functionality will be for employers only and there is no “scope for agents to do it”. As instructed by the banking rules, agents will still not be able to set up the direct debits on behalf of their clients.

 

However, if you would like to set up a monthly payment to HMRC for PAYE Spark are more than happy to assist you with setting this up providing instructions and advice to guide you through the process.

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