Paying PAYE by recurring direct debit

HMRC has modernised its direct debit payment system for employer PAYE so a recurring direct debit can be set up. Previously employers could only set up a direct debit to collect a single payment, but not a recurring direct debit.

The business tax account (BTA) and the employers’ liabilities and payments screens have a new link for ‘set up a direct debit’. This allows client companies to set up a direct debit instruction once, authorising HMRC to collect directly from their bank account based on their return submissions.

After an employer has set up a direct debit, the link will change to ‘manage your direct debit’ and an employer will be able to view, change or cancel the direct debit online.

Payments which will be covered by direct debit will show within employers’ liabilities and payment screens for both employers and agents.

This service is not available for agents and only employers will be able to create, view, amend and cancel a direct debit.