Paying by Direct Debit
We are now able to offer Employers the option of paying by Direct Debit.
If you are registered and enrolled for the 'PAYE for Employers' Online service, you can now make your monthly or quarterly payments by Direct Debit.
A Direct Debit payment can be set up by:
- selecting PAYE for Employers from the do it online menu
- logging on the Welcome to Online Services page
- selecting Direct Debit payment from the Main menu
- following the on-screen links
New users first have to register and enrol for the PAYE for Employers service on the Welcome to Online Services page. This gives you immediate access to Direct Debit Online. When you receive your Activation PIN please activate the service. This will ensure you have access to Direct Debit Online next time you have to make a payment.
The only condition is that the person setting up the Direct Debit must be able to authorise Direct Debits from the bank/building society account on their own.
Why pay by Direct Debit?
We recommend that you pay by Direct Debit because:
- it’s safe and secure and available 24 hours a day
- it puts you in control, making it less likely you’ll miss a payment deadline
- you can set up your payment as soon as you’ve calculated what’s due
- Direct Debit provides certainty about when your payment will reach HMRC
- HMRC validates your payment reference so payment reaches your account without any delay
- unlike with any other payment method, you are protected by the Direct Debit Guarantee
- it avoids the need to write cheques and saves postage if you normally pay by post
Using Direct Debit for the first time
The first time you use the Direct Debit payment facility you will be asked to complete an online Direct Debit Instruction (DDI). The DDI is your instruction to your bank and it allows us to collect payment from your bank account. You must complete it at least five bank working days before you want us to collect your first payment.
To complete the DDI you must be able to authorise Direct Debits from the bank/building society account on your own.
Once the DDI is in place you can create a Direct Debit payment.
Note: You can later reuse the DDI to create a further Direct Debit payment(s).
Setting up Direct Debit payments
When setting up your first Direct Debit payment the earliest collection date
you can enter is a date five bank working days ahead. If you are reusing a
DDI you can enter a collection date three or more bank working days ahead.
Bank working days are Monday to Friday excluding bank holidays. Please note the Direct Debit payment you have created will not be visible in your HMRC Online account area for up to 36 hours.
Changing or cancelling a payment
You can amend or cancel an online Direct Debit payment up to three bank working days before the payment date.
Payment dates
Payment by Direct Debit is classed as an electronic payment method so cleared funds must be in the HMRC bank account no later than the 22nd of the month or quarter when payment is due. The Direct Debit payment needs to be created no later than three bank working days before the 22nd (five bank working days if you are also completing a DDI).
Where the 22nd falls on a weekend or bank holiday, cleared funds must reach the HMRC bank account no later than the last bank working day before the 22nd.
