Paying PAYE/NI by direct debit ??

If an employer sets up a direct debit arrangement for their monthly PAYE/NI liability does HMRC automatically collect the amount payable as per the FPS submitted under RTI or does the employer have to logon to Online Services and enter the amount payable which HMRC then collect by direct debit ?? If an employer is required to logon to Online Services and enter the amount payable each month what is the point of setting up a direct debit arrangement they may as well make the payment through internet banking.

Short description: 
Paying PAYE/NI by direct debit ??


DMGbus's picture

Agreed DD for PAYE has been a waste of space

DMGbus |

I have had one client paying PAYE/NIC by direct debit - what a load of hassle this has been, with no obvious benefit compared to paying by bank transfer or debit card.

Now, if HMRC employed intelligent IT management and intelligent IT consultants the concept of a DD being automated (as with VAT returns) would be possible.  Sadly it appears that neither factor is present.

PS. The DD would need to be generated from two sources of data, ie. FPS plus additionally the EPS where applicable.


Euan MacLennan's picture

Not a waste of space

Euan MacLennan |

Yes - you have to go into HMRC Online Services separately each month to notify the amount to be paid on what date

and Yes - it would be much better if HMRC could just take the amount automatically on the correct date

and I agree that there is no great advantage to DD over internet payment if the employer has to do it himself, other than the certainty that it will not be taken out of his bank account until (the last working day up to) the 22nd, but most of our clients want us to arrange the DD payment for them when we run their payroll to save them having to remember to do it themselves by the correct date. They see it as an added value service which takes us minimal time to provide when running their payroll.