From 19 September 2022, HMRC will be introducing an optional payment method for a reoccurring Direct Debit for PAYE (Pay As You Earn).
With a current array of payment methods, employers are responsible for making the PAYE payment each month and entering the details required to enable payment.
With the new Direct Debit method, payments will be taken automatically each month, using the figures which have been submitted via the payroll scheme meaning there is no requirement for employer input.
HMRC Guidance
HMRC have not yet issued full guidance on the new Direct Debit method, they have however released the following information:
”There will be changes to the business tax account and the employers’ liabilities and payments screens on the employers PAYE service. A new link ‘Set up a Direct Debit’ will be introduced and this will allow customers to set up a Direct Debit instruction, authorising HMRC to collect direct from their bank account based on their return 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.”
”The facility to create, view, amend and cancel a Direct Debit is restricted to employers only, there is no scope for agents to do this.”
Once more information is released from HMRC, we will be providing our clients with a step by step guide on how to set up the Direct Debit.
Want to know more?
If you’d like to know more about the new payment method, pop us a message at mail@seavorchartered.co.uk or call us on, 01228 904904.
