Employer PAYE new recurring Direct Debit functionality

Employer PAYE new recurring Direct Debit functionality

HMRC will shortly introduce an Employer PAYE new recurring Direct Debit functionality in line with its Payments Strategy. This ensures that a consistent set of payment options are available to all customers.

Currently employers can set up a Direct Debit to collect a single payment, but not a recurring Direct Debit.

There have been some delays, but HMRC now expect it to be available in early October 2022.

Once the new service is available, there will be a new link which will allow employers to set up a Direct Debit via the employers’ liabilities and payments screens in the business tax account (BTA). This will allow you to set up a recurring Direct Debit instruction (unless you cancel it), authorising HMRC to collect directly from their bank account based on your 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 manage the Direct Debit online.

Payments covered by Direct Debit will show within employers’ liabilities and payment screens for both employers and agents.

Only employers will be able to create, view, amend and cancel a Direct Debit.

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