On 19 September HMRC’s new “variable payment plan” for payroll deductions and liabilities goes live. How does it differ from current payment arrangements and how can you sign up for it?
The current system for paying monthly payroll deductions by direct debit (DD) requires employers to set up a new direct debit for each payment. This cumbersome arrangement won’t be necessary when HMRC’s “variable payment plan”, launching on 19 September 2022, is up and running.
The new DD arrangement is voluntary and takes up to five days to put in place. If an employer signs up for it HMRC will be authorised to collect the monthly taxes (PAYE, NI contributions, CIS deductions, and apprenticeship levy) by DD in varying amounts on a continuous basis without fresh instructions from the employer. The service can be accessed through Pay employers’ PAYE or your business tax account and employers’ PAYE service.
This article has been reproduced by kind permission of Indicator – FL Memo Ltd. For details of their tax-saving products please visit www.indicator-flm.co.uk or call 01233 653500.