Paying PAYE/NI by direct debit ?? | AccountingWEB

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.

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Paying PAYE/NI by direct debit ??

Comments

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.

charliecarne's picture

Let's persuade HMRC to take PAYE automatically by direct debit

charliecarne |

I looked at the direct debit options for paying PAYE today and am disappointed that HMRC still haven't updated their systems to take payments automatically, based upon the figures submitted on the FPS. As DMBbus points out above, they are capable of doing this for VAT, so why not for PAYE? I agree with him that setting up an individual DD each month is utterly pointless and has no significant advantage over internet bank transfers.

Euan says that he finds it helpful, as he can set up the DD for his client. Surely he should only be setting up a DD payment if he has authority over their bank account and, if he does, then he can use internet banking.

Let's see if we can persuade HMRC to take automated monthly direct debits based upon figures submitted via FPS (as they do for VAT payments based upon the VAT return). I am on the AOSS beta trial and, if lots of people add a "thanks" to this post, I will feed that response back to HMRC as highly requested.