News

Variable payment plan goes live on 19th September

Published: 16th September 2022

The current system for paying monthly payroll deductions by direct debit (DD) requires employers to set up a new direct debit for each payment. This cumbersome arrangement won’t be necessary when HMRC’s “variable payment plan”, launching on 19 September 2022, is up and running.

The new DD arrangement is voluntary and takes up to five days to put in place. If an employer signs up for it HMRC will be authorised to collect the monthly taxes (PAYE, NI contributions, CIS deductions, and apprenticeship levy) by DD in varying amounts on a continuous basis without fresh instructions from the employer. The service can be accessed through Pay employers’ PAYE or your business tax account and employers’ PAYE service.

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