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How to set up PAYE Direct Debit

HMRC unable to use direct debit to automatically take RTI payments

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?


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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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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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10th Oct 2017 14:47

Because they are HMRC

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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.

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