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Sep 22, 2022

HMRC delays PAYE direct debit service

A new PAYE direct debit payment plan, originally set to launch on 19 September 2022, has been pushed back to 3 October, according to an update by HMRC.

The service was announced following taxpayer feedback on the current system, which only allows employers to make a single payment via direct debit each time they want to pay HMRC.

Instead, from the new rollout date, customers will be able to access a new direct debit service through pay employers' PAYE or directly through the business tax account and employers' PAYE service.

A new link, "set up a direct debit", will be introduced, allowing employers to set up a direct debit instruction.

After the setup is complete, the link will change to "manage your direct debit", allowing them to view, change or cancel the direct debit online.

This will authorise HMRC to collect directly from customer bank accounts based on their return submissions.

Employers will be able to set up direct debits to pay PAYE tax and National Insurance contribution (NIC) liabilities.

According to HMRC, access to the variable payment plan will be restricted to employers, and agents will not be able to take advantage of the service.

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