Beware of HMRC delays when setting up PAYE direct debits
One of the professional accountancy bodies is warning that employers need to allow additional time to set up new variable direct debits for PAYE. Why?
HMRC’s guidance on PAYE states that employers should set up direct debits at least six working days in advance of the payment due date. Following an update on HMRC delays provided to the Institute of Chartered Accountants in England and Wales (ICAEW), it turns out that more notice is needed in order to meet the deadline. HMRC’s guidance has not been amended, but the ICAEW is warning that new variable direct debits need to be set up by:
- 10 March for PAYE due on 22 March; and
- 12 April for PAYE due on 22 April.
The recommendation is that employers set up new direct debits at least nine working days prior to the payment due date. This service is still relatively new and HMRC is working to improve the process.
Related Topics
-
ATED filing deadline approaching for 2026/27
Companies holding high-value UK residential property need to ensure their annual tax on enveloped dwellings (ATED) returns are filed by the end of April. With the deadline approaching, what do you need to do?
-
HMRC to contact representatives over NI refunds for deceased taxpayers
HMRC has updated its guidance to confirm that it will write to representatives of deceased individuals where it believes too much NI has been paid. What should you expect if you receive such a letter?
-
Free childcare for company owners?
You’re an owner manager and your daughter is due to start nursery. You understand that working parents can get free childcare but a friend said this isn’t available if you only pay yourself dividends. Is this true and what can you do to qualify?