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How to set up PAYE Direct Debit

HMRC unable to use direct debit to automatically take RTI payments

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I recently contacted HMRC to find out how to set up a direct debit to pay my PAYE account monthly.

It appears I need to manually enter all the information (inlcuding accounts office reference and amount) on their website for each payment. This is not how I would expect a DD to work.

Is there some logical reason why they can't set up a DD to work properly?

Replies (9)

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By rjoconnor81
10th Oct 2017 12:32

If you ignore the fact that HMRC paye system is not accurate and I wouldn't trust them to just take PAYE, the main reason is timing. The monthly EPS (might not be applicable to you) doesn't need to be filed until the 19th. The EPS is the form you submit monthly to claim CIS suffered, SMP, SPP etc. There isn't enough time between that deadline and the payment deadline to be able to take an accurate direct debit.

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By dougalthedog999
10th Oct 2017 13:01

Point taken re accuracy.

The rest kind of makes sense but then why offer the direct debit option at all? If they are going to offer the option, why not make it fully automatic with the proviso that you need to submit the EPS 10 working days before the 22nd deadline?

Even with a manual DD option, the fact you need to enter your accounts reference and payment amount is just silly.

Also, why not offer a continuous card payment option which is fully automatic?

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By bernard michael
10th Oct 2017 14:47

Because they are HMRC

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Paul Layte
By Paul Layte FCA
10th Oct 2017 19:14

Sadly you just have to go into the portal each month as process manually. Confusingly this is called a direct debit although does not behave like one! The VAT DD works just fine in our experience and there should be a better automated option for PAYE from HMRC but it just does not exist which is very frustrating.

Thanks (2)
By hindsight
12th Sep 2019 11:24

The direct debit system used to work ok- you just put a payment plan in place each month using the direct debit set up. Now their website makes you set up a brand new direct debit each month which is completely useless. I have spoken to the revenue and they don't understand the issue at all- but it was them who changed the system which is a shame as the previous one worked well

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Replying to hindsight:
Lone Wolf
By Lone_Wolf
13th Sep 2019 09:52

Better late than never I guess...

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By SXGuy
12th Sep 2019 14:57

Why do you even need to enter all that gumpth into hmrcs website to make a payment? It's quite easy to make a payment via bacs. All you need is the reference along with the period your making a payment for.

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Replying to SXGuy:
My photo
By Matrix
12th Sep 2019 15:07

You don’t need the period provided you pay after the 5th, my clients always use the same reference and occasionally pay early and usually fine.

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By SteveHa
12th Sep 2019 21:29

Why do you post so surprised that HMRC fail to do something? This is the normal state of affairs. HMRC work on the basis of can't do it, or make it impossibly complicated.

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