Currently employers can set up a Direct Debit to collect a single payment, but not a recurring Direct Debit. By mid-September HMRC should have in place the ability to set up a recurring Direct Debit for employers.
This aligns to the ambitions of the HMRC Payments Strategy, to make available one consistent set of payment methods to all customers across all regimes.
Once available, there will be a change to the Business Tax Account (BTA) and the employers’ liabilities and payments screens. There will be a new link for ‘Set up a Direct Debit’. This will allow you to set up a Direct Debit instruction once (unless cancelled), authorising HMRC to collect directly from the bank account based on the return submissions filed with HMRC.
After the employer has set up a Direct Debit, the link will change to ‘Manage your Direct Debit’ and an employer will be able to view, change or cancel the Direct Debit online.
Payments which will be 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. This is not something we as accountants are able to do on your behalf.
We would encourage you to set up the DD as soon as it becomes available – one less thing to worry about paying on time each month!
