Allow more time to set up PAYE direct debits

Employers need to allow at least three extra days to arrange any new variable direct debits to pay their PAYE liabilities because of delays in processing times HMRC has informed the ICAEW Tax Faculty. So for any payments due after 22 March the direct debit must be set up by 10 March and those due on or after 22 April the deadline is 12 April.

HMRC’s current guidance says that direct debits should be set up at least six working days in advance of the payment due date. However in the light of the latest recommended dates from HMRC for setting up a direct debit for March and April 2023 the faculty recommends that direct debits are set up at least nine working days in advance of the payment date.

HMRC states that it is working to shorten that lead time but...