This guide explains what you need to do to set up an online Direct Debit to pay one of the following:
If you want to pay VAT by Direct Debit please see the 'More useful links' section at the end of this page.
HM Revenue & Customs (HMRC) will only use the Direct Debit to collect the amount you ask them to. They won't collect any other amounts this way.
On this page:
The Banking Industry's Bacs payment scheme has introduced a £20 million cap on single Bacs transactions. If you are making a payment over £20 million you'll need to contact your bank to make alternative arrangements - for example, paying by CHAPS. And you'll need to allow enough time for your transaction to reach HMRC on or before the payment deadline.
To set up an online Direct Debit you must be able to authorise Direct Debits from the bank/building society account that you will make payments from.
Agents can only use the service if they are an authorised signatory on their client's bank account.
Before you set up any Direct Debit payments you must have signed up for one of the following HMRC online services:
If you haven't already signed up you can find out more using the links below.
Once you've signed up you can start setting up Direct Debit payments right away. HMRC will send you an Activation Code (also known as an Activation PIN). Once you receive this code you must activate the service within 28 days or you won't be able to use online Direct Debit next time you want to make a payment.
Understanding and using Self Assessment Online
How to register for PAYE for employers
Corporation Tax Online: benefits and how to sign up
Understanding and using CIS Online
Machine Games Duty - how to sign up
Budget Payment Plans are available to Self Assessment customers who pay by online Direct Debit and are up to date to with their payments.
When you set up your Direct Debit you must select the Budget Payment Plan option.
With a Budget Payment Plan you make regular payments towards the amount you should pay by 31 January/31 July. The plan is flexible and allows you to:
If you haven't paid the full amount you owe through your Budget Payment Plan then you will need to make another payment to cover the difference. You can do this by setting up another Direct Debit and your payment must reach HMRC by 31 January/31 July.
You cannot use a Budget Payment Plan to make payments if:
If you are unable to pay the full amount you owe by 31 January/31 July or for advice on bringing your Self Assessment payments up to date please telephone the HMRC Payment Helpline on Tel 0845 366 1204.
From April 2013 there are two different payment plan options to pay your Machine Games Duty (MGD):
To use these options you will need to be signed up for the MGD online service.
Log in to set up a Direct Debit payment now
Find out how to sign up for the MGD online service
When you set up your first Direct Debit payment you should complete the online Direct Debit Instruction (DDI) at least five bank working days before the date you want your payment to be collected.
To make more payments using the same DDI allow at least three bank working days. Bank working days are Monday to Friday excluding bank holidays.
You must set- up your DDI at least 10 bank working days before you send your online MGD return. If you don't then you will need to make a payment using another payment method.
Once you have set up your DDI you just need to file your MGD return each quarter and HMRC will automatically collect the amount you owe within three bank working days of your payment date.
You won't be able to see any Direct Debit payments you've set up in your online account for up to 36 hours.
To set up a DDI:
You only need to set-up your DDI once unless you want to change the bank/building account that you are making your payments from
After you've completed the DDI you then need to set-up your payment.
Once your DDI is set-up you can make a single payment. This means that you will need to set-up a payment each time you need to pay HMRC. For Self Assessment, you can also set up a Budget Payment Plan. You can also set-up a Variable Payment Plan for MGD.
When you set up your payment allow enough time for it to reach HMRC in time for your payment deadline.
You can make a single payment to pay what you owe for any or all of the following:
If the tax or duty you have to pay is not on the list please look at the payment options on the back of your 'Notice to Pay' or the relevant web guide in paying HMRC.
Log in to set-up a Direct Debit payment now
You can use your existing DDI to set-up more payments as long as you want to make the payments from the same bank/building society account. If you want to use a different bank/building society account then you will need to set-up a new DDI.
To make another payment using an existing DDI:
Log in to set up further Direct Debit payments now
You will receive a message telling you that it was successful.
Your Direct Debit payment will appear on your bank statement as 'HMRC NDDS'.
You can change or cancel a single payment or a Budget Payment Plan online up to three bank working days before the payment is collected.
