Making PAYE Payments by Direct Debit

2nd August 2022

For many years employers have been able to set up a Direct Debit (DD) with HMRC to make a single one-off payment. Recurring DD’s have not been allowed. From early Autumn, HMRC are expecting to launch a new Payments Strategy enabling employers to establish a DD that will recur monthly.

 

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.

 

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 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. An agent will not have the ability to create, view, amend or cancel a DD.

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