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Who pays PAYE amounts to HMRC

18th May 2017
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In a client/accountant relationship, where the accountant carries out payroll function, who pays the PAYE liability to HMRC?

Is it normal for accountant to have client bank details to pay this online or does the accountant just advise client what amount is due each month and the client pays?

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By gphemy
18th May 2017 15:44

In a case with which I am very familiar, the payroll service provider calculates the sum due to HMRC and submits the RTI reports, but the client actually pays. It seems to be more usual for the service provider also to transmit the payroll via BACS to the clients bank, having the necessary signatory rights on the client's bank account.

In other words, either scenario applies, you choose.

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By [email protected]
18th May 2017 20:52

Great answer, thanks

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By [email protected]
18th May 2017 21:11

Thank you so much! How do I set up BACS? Any way to link payroll software to client bank? I will be using Moneysoft payroll manager.

Is there any extra charge to using BACS service?

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By gphemy
19th May 2017 12:11

I suggest you Google "Moneysoft BACS" to get up to speed with the various possibilities. That should return half a dozen helpful answers from this very site, and perhaps give a few pointers to other issues to consider. And if it doesn't, you'll have to put in considerable extra effort and Google "site:accountingweb.co.uk Moneysoft BACS" which will give you 84 hits ... and counting. Although it did take nearly 0.5 seconds!

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CreDec
By CreDec Client Services
22nd May 2017 17:25

Hi, have you heard about our RTI BACS solution? This is a payments service which allows you to pay the wages to employees and HMRC for your client without directly accessing their bank account. We are fully compatible with Moneysoft and payment and employee information is captured automatically from within the software, saving time and preventing errors. We also offer the facility for your client to check the payments before they are made if they would like to. There are no client monies issues because the funds go straight from your client’s bank account to their employees. RTI BACS from CreDec is fully compliant with HMRC best practice guidance on hashing. Check out our supplier page on AccountingWeb (https://www.accountingweb.co.uk/credec) or email us here at [email protected] for more information. Thanks!

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