Employers Can Now Pay Their PAYE to HMRC by Recurring Direct Debit

HMRC have introduced a new variable recurring direct debit payment facility for employers to pay their PAYE.

This new service can be accessed through Pay employers’ PAYE: Direct Debit – GOV.UK  or directly through  the business tax account and the employers’ PAYE.

There has been a change to the business tax account and the employer’s liabilities and payments screen on the employers’ PAYE service. A new link ‘Set up a Direct Debit’ has been introduced to allow employers to set up a direct debit instruction which will authorise HMRC to collect the PAYE due directly from the employer’s bank account based on their payroll 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.

As banking rules require direct debits to be set up by the signatory to the bank account, unfortunately we cannot set up direct debits on behalf of our clients.

Once signed up to the variable direct debit facility to pay Employers’ PAYE by direct debit, the following charges will be collected on receipt of payroll submissions to HMRC:

• Full Payment Submissions
• Employer Payment Summary
• Construction Industry Scheme
• Apprenticeship Levy
• Class 1A National Insurance
• Earlier Year Update

HMRC will usually take the payment either:

• Shortly after the 22^nd of the month
• Four working days after you file your payroll submission return (if you file it after the 19^th of the month).

HMRC will tell you the date and amount to be taken, no later than three days before the payment is collected.

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

The PAYE payment should show on the Employer’s HMRC online account within 6 days of payment.

If you would like to talk to us about the new direct debit payment facility or find out more about our payroll services, please contact Julie Hunter on 0131 317 7377 or email Julie.hunter@jsca.co.uk

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.