We are sharing this update from ACCA, our professional body, for the interest of clients and contacts. The content is (c) ACCA

Including commentary on Direct Debit payments and Time to Pay

ACCA brings the following updates from HMRC to your attention.

Employer PAYE Direct Debit

We are aware that the deadline for setting up a Direct Debit which will then collect charges with a payment due date of the 22nd is earlier than we would like. We are working to shorten that lead time, but it will take some time.

Any new Direct Debits need to be set up by 10 March, or by 12 April to ensure the monies due by 22nd of that month are collected by the Direct Debit.

Generic notifications when a Direct Debit is in place

The due date for payments is 22nd of the month. The Direct Debit is always collected shortly after 22nd. This means you may receive a generic notification saying that their payment is late. This generic notice isn’t a penalty, it is an advisory notice informing a customer/agent that their payment was received after the due date.

We want to apologise for these messages where the bill was successfully collected via Direct Debit variable payment at the first attempt. We are looking to make changes to correct this, although it will take some months.

Direct Debit and Self-Serve Time to Pay

Accountants are unable to set up either a Direct Debit or an online Time to Pay arrangement on behalf of their clients. The business should log into their Business Tax Account and, provided they have ‘PAYE for employer’ enrolment, they will be able to set up a Direct Debit themselves.

We are planning to update the navigation menu so that it shows accountants whether their client has either a Direct Debit or a Time to Pay arrangement in place.

Self-Serve Time to Pay Arrangement

You may be able to set up a Time to Pay arrangement online if you have PAYE arrears which you cannot pay. If you do not meet the criteria for the online arrangement, yu will be asked to call HMRC, and an adviser will discuss the options available.

The main criteria for the online arrangement set-up are:

  • the PAYE debt has to be less than £15,000
  • you must not have any other debts
  • the Time to Pay arrangement must be set up within 35 days from the date the liability was due
  • the debt must not include penalties or specified charges.
  • all returns must have been submitted.