Variable direct debits for PAYE clarification

In the August 2022 Employer Bulletin HMRC announced that a variable payment plan for PAYE and National Insurance liabilities will be introduced from 19 September 2022. The current system allows only a single payment to be made by direct debit.

In response to questions raised by ICAEW’s Tax Faculty HMRC has confirmed that the direct debit amount will be the figure declared on returns submitted by employers/payroll agents or a lesser figure if any overpayments have been allocated to reduce the original declaration. The direct debit will never be greater than the value declared on the return and can never be more than £20m in accordance with direct debit BACS rules.

Secondly the money will be drawn on 23rd of each month or the next bank working day. The employer will receive a notice three days in...