I am constantly asked by my clients if they can setup a Direct Debit for their monthly or quarterly PAYE bill, and up until now I have had to say this isn’t available….until now!  Well 19th September!


HMRC are finally offering a variable Direct Debit to automatically collect PAYE and CIS payments.


At the moment, the Direct Debit option HMRC offer requires for the Direct Debit to be setup each month, which is a chore (and not really a Direct Debit!).


From 19th September 2022, Employers can take advantage of the new variable Direct Debit.

This service will be available to setup via the Pay employers PAYE link on the HMRC website, or via the Employers business tax account/PAYE service. 


After 19th September there will be changes made to the business tax account and the employers liability screen on the PAYE service.  A link to ‘Setup a Direct Debit’ will be introduced.  Following setup, the link will change to ‘Mange your Direct Debit’ where employers can then view, change or cancel the Direct Debit online.


This new facility to create, view, amend and cancel a Direct Debit is restricted to Employers, there is no scope for agents to do this on behalf of their clients.


Once signed up to the variable Direct Debit, HMRC will have the ability to collect any of the following liabilities, on receipt of the relevant returns/submissions:


  • Full Payment Submission
  • Employer Payment Summary
  • Construction Industry Scheme
  • Apprenticeship Levy
  • Class 1A National Insurance
  • Earlier Year Update


You will be required to note your Accounts Office Reference upon setup of the Direct Debit.  This can be found on any PAYE correspondence you will have received from HMRC. Failing that, your payroll provider will be able to provide you with this reference.

Once setup payments from your bank will show as ‘HMRC NDDS’. 


The other positive of this service is the allocation of payments.  Employers currently must add 4 digits to their Accounts Office Reference showing the PAYE year and month the payment relates to.  With this Direct Debit, the allocation is all taken care of as it is based on the payroll / CIS returns/submissions. 


Direct Debit payments will be taken based on the existing deadlines:


  • 22nd of next tax month for if pay monthly
  • 22nd following the end of the quarter if you pay quarterly


If you would like to discuss CJ Bookkeeping looking after your payroll, or if you have any questions, please do get in touch.

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who will bring you improved LIVE financial visibility and keep you aware of what’s happening in your business,
call CJ Bookkeeping Ltd.