Employers PAYE – introduction of variable payment plan

Posted 15/09/2022
Employers PAYE – introduction of variable payment plan

From 19 September 2022, in response to customer feedback, employers’ PAYE customers will be able to take advantage of a new variable Direct Debit payment plan.

The service can be accessed through Pay employers’ PAYE or directly through the business tax account and the employers PAYE service.

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.

If signed up to a variable payment plan, the following charges will be collected on receipt of the returns to HMRC:

1.       Full Payment Submission

2.       Employer Payment Summary

3.       Construction Industry Scheme

4.       Apprenticeship Levy

5.       Class 1A National Insurance

6.       Earlier Year Update

What does it mean for me?

If we complete your payroll each month, we’ll still continue to send the usual information, so you’ll know the amount that will be collected by direct debit, you just won’t have to make a physical payment each month, it will be done automatically.

Posted 15/09/2022