Employers’ PAYE variable payment plan – What you need to know

Employers paying staff via PAYE will be able to use a new variable direct debit payment plan from 19 September 2022.

Accessed through the existing ‘Pay Employer’s PAYE’ portal or directly through the business tax account and the employers PAYE service, the new plan will allow businesses and organisations to set up a direct debit instruction, allowing HM Revenue & Customs (HMRC) to collect money directly from their bank account based on their return submissions.

Once this has been set up, employers will be able to manage their direct debit, allowing them to view, change or cancel the direct debits online. Currently, this can only be managed by an employer and not their agent.

However, this will not affect the business tax account and the employers’ liabilities and payments screens on the employers’ PAYE service.

Once signed up to the variable payment plan, the following charges will be collected directly from an employer’s bank on HMRC’s receipt of a PAYE return:

  • Full Payment Submission
  • Employer Payment Summary
  • Construction Industry Scheme
  • Apprenticeship Levy
  • Class 1A National Insurance
  • Earlier Year Update

Want to learn more about making PAYE payments under this new system? Please get in touch with our payroll team.