From Monday 3 October 2022, HMRC are introducing a new payment system where employers’ PAYE customers can pay via variable Direct Debit.

Previously it had only been possible to pay by Direct Debit as a one-off payment. However, this has now changed, and from October employers can now set up a recurring direct debit to pay their PAYE.

If you want to set this up you will need to do it via your business tax account and the Employer’s PAYE Online service.

A new option will be added to the employers’ liabilities and payments screens, which will feature the option to ‘set up a direct debit’.

This will provide HMRC with authorisation to collect the PAYE and NIC that they are owed, as shown on their RTI payroll submission, direct from the employer’s bank account.

Once you have set up a recurring direct debit facility, the link will change to ‘Manage your direct debit’. This will then allow you to view, change or cancel your direct debit online.

This facility to create, view, amend and cancel a Direct Debit is restricted to employers only, there is no scope for us as agents to do this.

If you do sign up to the variable payment plan, the following charges will be collected on receipt of the returns to HMRC:

• Full Payment Submission
• Employer Payment Summary
• Construction Industry Scheme
• Apprenticeship Levy
• Class 1A National Insurance
• Earlier Year Update.