As part of a wider modernisation programme, HM Revenue & Customs (HMRC) are introducing the capability to set up recurring direct debit payments for employer PAYE. Currently, employers can only set up a direct debit to collect a single payment.

The service will be available from mid-September this year.

How the direct debit will be implemented

Once the new service is live, there will be a change to the Business Tax Account (BTA) and the employers’ liabilities and payments screens.

A new link will be included to ‘set up a direct debit’. Once the direct debit has been set up, the link will change to ‘manage your direct debit’ and will enable the employer to view, change or cancel it online.

The direct debit payments will show within employers’ liabilities and payment screens for both employers and agents.

The service is only available for employers, and only they will be able to create, view, amend and cancel a direct debit.