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.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about variable direct debits for PAYE and NIC liabilities, it may be a great idea to give me a call on 01908 774320 and let's see how I can help you.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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