If you’re an employer, you can pay PAYE to HMRC using direct debit, but each direct debit authority only applies for a single payment, which makes the process tedious. However, the good news is that this is now changing.
How To Activate Your New Direct Debit
From mid-September, a recurring DD facility will be able to be set up, allowing you to pay your PAYE liabilities as you would your regular VAT payments. This new facility can be accessed via your online Business Tax Account (BTA) on the GOV.UK website.
Once logged in, keep an eye out for the new link titled ‘set up a direct debit’. When you have activated this, HMRC will be given the authorisation to collect the amount of PAYE shown as owing on your RTI returns. You will also notice a new ‘manage your direct debit’ section, which will allow you to cancel or change your DD online.
There Are Also Changes To PAYE Settlement Agreements
PAYE settlement agreements (PSAs) are used to pay PAYE on one-off benefits that apply to many employees. Setting this up can be a pain as you are required to submit a paper form (PSA1). For those with employees who reside in other tax jurisdictions (i.e. Scotland), a separate PSA1 form was required – until now.
HMRC has launched a new online PSA1; this can be completed just once for all employees, regardless of where they reside. This not only allows HMRC to process PSA1 quicker but also ensures fewer mistakes.