Currently employers can set up a Direct Debit to collect a single payment, but not a recurring Direct Debit.
The HMRC had planned to make this service available in mid to late August 2022. However, to ensure it offered its customers the best possible experience, there have been some delays and it now expects it to be available in early October 2022.
Once the new service is available, there will be a new link which will allow employers to set up a Direct Debit via the employers’ liabilities and payments screens in the business tax account (BTA). This will allow the clients of agents to set up a recurring Direct Debit instruction (unless they cancel it), authorising HMRC to collect directly from their bank account based on their return submissions.
After an employer has set up a Direct Debit, the link will change to ‘Manage your Direct Debit’ and an employer will be able to manage the Direct Debit online.
Payments covered by Direct Debit will show within employers’ liabilities and payment screens for both employers and agents.
Only employers will be able to create, view, amend and cancel a Direct Debit.