Making PAYE Payments By Direct Debit (DD)

After initial teething problems, HMRC under-estimated the number of employers who wished to take advantage of the scheme, paying your liabilities to the revenue via an automated payment is fully operational.

Employers will need their own Business Tax Account (BTA). On the BTA there will be a link to “Set up a Direct Debit”. Once established, HMRC will directly collect any liabilities from the employer bank account based on RTI returns.  Employers will be advised of the amount HMRC intend to take 3 working days before the payment is collected. The payments will be collected on or around the 22^nd of the month, or 4 working days after the FPS file is sent post 19^th of the month.

Once the DD is set up, the link will change to “Manage your Direct Debit” & the employer will be able to view, change or cancel the DD online before any payment is taken. Any payments covered by DD will show on the payments & liabilities screens on existing HMRC portals. Any interest or penalties charged cannot be paid via this set up & a different payment method has to be used. Any payments made will appear on the company bank statements as “HMRC SDDS”.

Any employer wishing to use this service must have their own BTA portal. This function cannot be used, or established, via a third party or agent log in account. Existing agent access will still be maintained, but an agent will not have the ability to create, view, amend or cancel a DD.

For more information or advice, please do get in touch with your local Whitings LLP Office.

Disclaimer - All information in this post was correct at time of writing.