From 3 October, employers will finally be able to set up a variable direct debit payment plan to settle their PAYE liabilities. The current system only allows for a single payment to be set up, which is not very convenient for employers who may be making a number of payments every year.

For those who would like to use the new functionality, new screens will be added to the Business Tax Account and the Employer’s PAYE service.  Look for a new link called ‘set up a Direct Debit’ in order to take advantage of the new service. Once a direct debit has been set up, it can be viewed, changed or cancelled online.

The new direct debit facility can only be set up or varied by the employer – not their agent – as banking rules require direct debits to be set up by a signatory of the account.

The facility will collect the total of the following sums from the employer’s bank account:

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

We understand that collection will be made on the 23rd of the month, or the next banking day when that falls on a weekend or bank holiday. Employers will be notified of the amount to be taken three days in advance.