Beware of HMRC delays when setting up PAYE direct debits
One of the professional accountancy bodies is warning that employers need to allow additional time to set up new variable direct debits for PAYE. Why?
HMRC’s guidance on PAYE states that employers should set up direct debits at least six working days in advance of the payment due date. Following an update on HMRC delays provided to the Institute of Chartered Accountants in England and Wales (ICAEW), it turns out that more notice is needed in order to meet the deadline. HMRC’s guidance has not been amended, but the ICAEW is warning that new variable direct debits need to be set up by:
- 10 March for PAYE due on 22 March; and
- 12 April for PAYE due on 22 April.
The recommendation is that employers set up new direct debits at least nine working days prior to the payment due date. This service is still relatively new and HMRC is working to improve the process.
Related Topics
-
Founders' relief: a closer look
The Budget's new Founders' Relief sounds remarkably generous, offering a 10% capital gains tax rate on up to £10 million of gains from selling shares from April 2027. However, a closer look at the proposed qualifying conditions suggests that relatively few business owners will benefit. Why might the relief be so difficult to claim?
-
MONTHLY FOCUS: 2026 BUDGET SPECIAL
Budget 2026 contains a mixture of tax rises, new reliefs and changes to the way businesses and individuals will be taxed from 2027 onwards. Savings and property income will face higher rates, the lifetime limit for Business Asset Disposal Relief will fall, a new founders' relief is planned and several allowances and business incentives are changing. Which measures matter most, and is there anything you should do before they take effect?
-
Autumn Budget 2026 – what are the key tax announcements?
The Chancellor delivered the Autumn Budget on 28 October, announcing a mixture of tax increases, new reliefs and changes to the way tax is administered. Although the headline rates of income tax, National Insurance (NI) and VAT remain unchanged, there are some significant changes affecting business owners, landlords and private individuals. What are the main announcements?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.