HMRC: Variable Direct Debits For PAYE And NIC

Additional functionality allowing employers to set up variable direct debits to pay PAYE and National Insurance liabilities will be launched in early October ...

HMRC's August Employer Bulletin announced that a variable payment plan for PAYE and NIC would be introduced from the 19th of September 2022. This has been delayed slightly and HMRC is expecting this new functionality to be available in October.

"The current system only allows a single payment to be made by Direct Debit!"

HMRC confirmed that direct debit amounts will be the same as that declared on returns that have been submitted by employers and payroll agents. Lesser amounts could be taken to for prior overpayments, reducing the original declaration.

Direct debits can't be more than £20m in accordance with banking rules and the money will be taken on the 23rd of each month, or the next working day. Employers receive advanced notice three days before the collection date.

"No interest is charged providing the direct debit goes through!"

Be aware that agents can not set up variable direct debits on behalf of clients as they must be created by a signatory of the bank account. In addition, employers may want to monitor the variable direct debit to ensure everything is in order and that the correct notifications are being received at the right time.

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