HMRC’s new ‘variable payment plan’ for payroll deductions and liabilities went live on 19 September.

The previous system for paying monthly payroll deductions by direct debit (DD) required employers to set up a new direct debit for each payment.

This is no longer necessary once an employer signs up for this new plan. HMRC will then be authorised to collect the monthly taxes (PAYE, NI contributions, CIS deductions, and apprenticeship levy) by DD in varying amounts on a continuous basis, without fresh instructions from the employer. The service can be accessed through Pay employers’ PAYE or your business tax account and employers’ PAYE service.

The new DD arrangement is voluntary and takes up to five days to put in place.

 

Want to get our news updates and insights for business owners straight to your inbox? Sign up to receive our emails.