Employers will be offered the option of setting up a recurring direct debit with HM Revenue & Customs (HMRC) as part of a wider payment modernisation programme.
Currently, employers can only set up a direct debit to collect a single payment. However, this new policy will see a change to the employer’s liabilities and business tax account (BTA) screens this September, introducing this helpful payment option.
A link will also be included that will enable client companies to mandate a direct debit instruction, which will authorise the tax authority to collect money directly from their bank account.
Much like any other direct debit mandate, employers will be able to view, amend, or cancel the direct debit via a “manage your direct debit” once it has been set up.
HMRC will also extend employer PAYE for agent online services to allow accountants and advisers to see payment records held by HMRC along with employer liabilities to help businesses improve their payroll processes and record keeping.
Link: Employer PAYE — new recurring Direct Debit functionality
