Pay Employers’ PAYE & NIC
Overview
You must pay your PAYE & NIC bill to HMRC by:
the 22nd of the next tax month if you pay monthly
the 22nd after the end of the quarter if you pay quarterly
If you pay by cheque through the post, it must reach HMRC by the 19th of the month.
Variable Direct Debits
From 3rd October 2022, employers will be able to pay their PAYE & NIC liabilities by a new variable or recurring Direct Debit payment plan. The current system only allows a single payment to be made by direct debit.
This service can be accessed through Pay employers' PAYE or directly through the business tax account and the employers PAYE service.
There will be changes to the business tax account and the employers’ liabilities and payments screens on the employers PAYE service. A new link ‘Set up a Direct Debit’ will be introduced, which will allow employers to set up a Direct Debit instruction, authorising HMRC to collect payment direct from their bank account, based on payroll return submissions.
An employer will be able to view, change or cancel their Direct Debit online. Agents cannot set up direct debits on behalf of clients, as banking rules require direct debits to be set up by a signatory to the bank account.
HMRC has confirmed that the direct debit amount will be the figure declared on the payroll returns submitted by the employer or payroll agents, or a lesser figure if any overpayments have been allocated. The direct debit will never be greater than the amount declared on the payroll return.
HMRC has also confirmed that the money will be drawn from the employer bank account on 23rd of each month, or the next bank working day. The employer will receive an advance notice three days in advance of every collection date, to ensure that they are notified of the amount being collected. There will be no additional interest charged to employers who choose to pay by variable direct debit, provided that their direct debit payment does not dishonour, for example due to insufficient funds, bank account closed, etc.
